Final answer:
Azure Monitor is the service that offers a comprehensive solution for telemetry data from cloud and on-premises environments, enabling monitoring, analyzing, and responding to application performance metrics.
Step-by-step explanation:
The service that delivers a comprehensive solution for collecting, analyzing, and acting on telemetry from both cloud and on-premises environments is Azure Monitor. Azure Monitor provides tools for monitoring, diagnosing, and gaining insights into applications' performance and availability. It also helps in understanding how applications are performing and proactively identifying issues affecting them and the resources they depend on.
Application Insights is a feature of Azure Monitor tailored specifically for web applications, whereas Azure Service Health provides information on the health of Azure services themselves. Compliance Manager, on the other hand, is more focused on managing an organization's compliance posture within Microsoft cloud services.