A Deep Dive into Azure Service Endpoints and Private Endpoints

Nimesh PanchalNimesh Panchal
5 min read

Azure networking offers Service Endpoints and Private Endpoints to securely connect Azure services to virtual networks (VNets). Both options improve security and connectivity, but they differ in implementation, use cases, and levels of isolation. This article provides a comprehensive understanding of these concepts by exploring the insights on both endpoints for clarity and flow..

Understanding Azure Service Endpoints: Secure Your VNet Connections

Service Endpoints extend your VNet identity to Azure services by routing traffic through the Azure backbone network. They allow secure access to Azure services without exposing traffic to the public internet.

Key Features:

  • Traffic is routed through the Microsoft backbone network.

  • Uses public IP addresses of Azure services but secures access at the subnet level.

  • Relies on Network Security Groups (NSGs) for access control.

Use Cases:

  • When you need a simple, cost-effective solution for securing connections.

  • Suitable for scenarios where complete isolation from the public internet is not required.

  • Commonly used with services like Azure Storage, SQL Database, and Key Vault.

Exploring Private Endpoints: Achieve Complete Isolation in Azure

Private Endpoints provide a private IP-based connection to Azure services within your VNet. They leverage Azure Private Link to completely isolate traffic from public networks.

Key Features:

  • Assigns a private IP from your VNet to the Azure service.

  • Requires private DNS zones for name resolution.

  • Offers end-to-end isolation and enhanced security.

Use Cases:

  • Ideal for workloads requiring strict isolation from the public internet.

  • Suitable for overlapping address spaces.

  • Necessary for sensitive workloads or compliance-driven environments (e.g., healthcare or finance).

  • Works with services supporting Azure Private Link, such as Storage, SQL Database, App Services, and more.

Service Endpoints vs. Private Endpoints: Key Differences Explained

FeatureService EndpointPrivate Endpoint
ConnectivityExtends VNet identity to Azure services over the Microsoft backbone network.Establishes a private IP-based connection to Azure services within the VNet.
IP AddressUses the public IP of the Azure service but routes traffic through the backbone.Assigns a private IP from the VNet to the Azure service.
IsolationTraffic is not exposed to the public internet but uses public DNS.Completely isolated; no traffic goes through public networks.
SecurityRelies on NSGs for subnet-level access control.Provides end-to-end security with private DNS resolution.
DNS ConfigurationNo custom DNS setup required; uses public DNS.Requires private DNS zones for name resolution of private IPs.
Supported ServicesLimited to specific Azure services like Storage, SQL, and Key Vault.Works with services supporting Azure Private Link (broader support).
PerformanceLower latency than public internet but less secure than private endpoints.Higher performance due to complete isolation and no internet exposure.
CostNo additional cost beyond standard VNet charges.Additional cost for Private Link and associated resources like DNS zones.

Choosing the Right Endpoint: Service or Private?

  • Choose Service Endpoints if:

    • You need a simple setup without additional costs.

    • Your application does not require complete isolation from the public internet.

    • The service you are connecting to does not support Private Endpoints.

  • Choose Private Endpoints if:

    • Your application requires strict isolation from public networks.

    • You are dealing with sensitive workloads or regulatory compliance needs.

    • The service supports Azure Private Link and you want enhanced security.

Implementing a Private Endpoint with Terraform: A Step-by-Step Guide

  1. Create a Resource Group

     textresource "azurerm_resource_group" "demo_rg" {
       name     = "nimesh-demo-rg"
       location = "East US"
     }
    
  2. Create a Virtual Network and Subnets

     textresource "azurerm_virtual_network" "demo_vnet" {
       name                = "demo-vnet"
       location            = azurerm_resource_group.demo_rg.location
       resource_group_name = azurerm_resource_group.demo_rg.name
       address_space       = ["10.0.0.0/16"]
     }
    
     resource "azurerm_subnet" "demo_vnet_subnet" {
       name                 = "demo-subnet"
       resource_group_name  = azurerm_resource_group.demo_rg.name
       virtual_network_name = azurerm_virtual_network.demo_vnet.name
       address_prefixes     = ["10.0.1.0/24"]
     }
    
  3. Create a Storage Account

     textresource "azurerm_storage_account" "demo_sa" {
       name                     = "demostorageacct"
       resource_group_name      = azurerm_resource_group.demo_rg.name
       location                 = azurerm_resource_group.demo_rg.location
       account_tier             = "Standard"
       account_replication_type = "LRS"
     }
    
  4. Set Up a Private Endpoint

     textresource "azurerm_private_endpoint" "demo_pvt_end" {
       name                = "demo-private-endpoint"
       location            = azurerm_resource_group.demo_rg.location
       resource_group_name = azurerm_resource_group.demo_rg.name
       subnet_id           = azurerm_subnet.demo_vnet_subnet.id
    
       private_service_connection {
         name                           = "demo_pvt_svc-connection"
         private_connection_resource_id = azurerm_storage_account.demo_sa.id
         subresource_names              = ["blob"]
         is_manual_connection           = false
       }
     }
    
  5. Configure a Private DNS Zone

     textresource "azurerm_private_dns_zone" "pvt_dns_zone" {
       name                = "privatelink.blob.core.windows.net"
       resource_group_name = azurerm_resource_group.demo_rg.name
     }
    
     resource "azurerm_private_dns_zone_virtual_network_link" "demo_pvt_zone_vlink" {
       name                  = "dem-pvt-vnet-link"
       resource_group_name   = azurerm_resource_group.demo_rg.name
       private_dns_zone_name = azurerm_private_dns_zone.pvt_dns_zone.name
       virtual_network_id    = azurerm_virtual_network.demo_vnet.id
     }
    
     resource "azurerm_private_dns_a_record" "pvt_alias_record" {
       name                = "examplestorageacct"
       zone_name           = azurerm_private_dns_zone.pvt_dns_zone.name
       resource_group_name = azurerm_resource_group.demo_rg.name
       ttl                 = 300
       records             = [azurerm_private_endpoint.demo_pvt_end.private_ip_address]
     }
    
  6. Apply the Terraform Plan

     bashterraform init
     terraform plan -out=tfplan
     terraform apply tfplan
    

Conclusion

In conclusion, understanding the differences between Azure Service Endpoints and Private Endpoints is crucial for optimizing the security and connectivity of your Azure services. Service Endpoints offer a straightforward, cost-effective solution for securing connections without complete isolation from the public internet, making them suitable for less sensitive applications. On the other hand, Private Endpoints provide enhanced security and complete isolation, ideal for sensitive workloads and compliance-driven environments. By carefully evaluating your specific needs and the supported services, you can choose the most appropriate endpoint solution to ensure robust and secure connectivity within your Azure infrastructure.

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Written by

Nimesh Panchal
Nimesh Panchal

I am Nimesh Panchal, a highly skilled and experienced professional with expertise in multiple cloud platforms, including AWS, Azure, and GCP. I am also certified in various cloud and virtualisation technologies, such as CKA, AWS, Azure, GPC, VMware, and Nutanix Throughout my career, I have demonstrated a strong passion for cloud computing and have actively contributed to the success of cloud adoption in diverse industries. My hands-on experience in designing, implementing, and managing cloud-based solutions has allowed me to drive operational efficiency, cost optimization, and scalability for businesses. As a cloud enthusiast, I stay updated with the latest advancements and best practices in the cloud domain. My commitment to continuous learning has enabled me to effectively leverage cloud technologies and deliver impactful solutions to complex challenges. Apart from my cloud expertise, I also possess a solid foundation in networking, virtualization, and data center technologies, making me a well-rounded IT professional. I take pride in collaborating with cross-functional teams and providing leadership in cloud migration, infrastructure design, and cloud security initiatives. My problem-solving skills, coupled with my ability to communicate technical concepts to non-technical stakeholders, have been instrumental in fostering seamless collaboration and driving successful cloud projects.