Understanding Azure Load Balancing


Introduction
In today's cloud-driven world, ensuring high availability and optimal performance of applications is crucial. Microsoft Azure provides robust load balancing solutions that efficiently distribute incoming network traffic across multiple resources. Two primary services in this domain are Azure Load Balancer and Azure Application Gateway. While both aim to enhance application scalability and reliability, they operate at different layers of the OSI model and cater to distinct scenarios.
Azure Load Balancer: Layer 4 Traffic Distribution
Azure Load Balancer operates at Layer 4 (Transport Layer) of the OSI model, focusing on transport-level traffic distribution. It directs incoming network traffic based on source and destination IP addresses and ports without inspecting the packet content. This makes it suitable for high-performance, low-latency distribution of TCP and UDP traffic.
Key Features:
High Throughput and Low Latency – Designed for high-bandwidth applications, ensuring minimal delay in traffic distribution.
Health Probes – Continuously monitors the health of backend instances, rerouting traffic away from unhealthy nodes.
Outbound Connectivity – Provides outbound connectivity for virtual machines without public IPs by translating their private IPs to public IPs.
Flexible Deployment – Supports public load balancing (for external traffic) and internal load balancing (for internal Azure Virtual Network communication).
Use Case Example:
A company hosts a multiplayer gaming platform on Azure Virtual Machines. To handle thousands of concurrent connections, Azure Load Balancer distributes incoming UDP traffic across multiple game servers, optimizing resource utilization and ensuring a seamless gaming experience.
Azure Application Gateway: Layer 7 Traffic Management
Azure Application Gateway operates at Layer 7 (Application Layer) of the OSI model, enabling advanced traffic routing based on HTTP request attributes. Unlike Azure Load Balancer, which only manages transport-level traffic, Application Gateway can inspect packet content and make intelligent routing decisions.
Key Features:
Web Application Firewall (WAF) – Provides protection against web vulnerabilities like SQL injection and cross-site scripting.
SSL Termination (SSL Offloading) – Offloads SSL/TLS encryption and decryption from backend servers, enhancing performance.
End-to-End SSL – Ensures complete encryption and decryption of traffic between users and backend servers.
URL-Based Routing – Routes requests to different backend pools based on URL paths, supporting microservices architectures.
Cookie-Based Session Affinity – Ensures subsequent requests from the same user session are routed to the same backend instance.
How Azure Application Gateway Works
Application Gateway sits between users and backend virtual machines, using Application Request Routing (ARR) to forward requests to appropriate services. It requires a private or public IP address to handle incoming HTTP/HTTPS traffic and direct it to configured endpoints.
Use Case Example:
A financial services company hosts its online portal on Azure. Using Application Gateway, the company routes requests to different microservices based on URL paths (e.g., /accounts
for account management and /transactions
for payments). Additionally, SSL termination at the gateway enhances security while reducing the load on backend servers.
Comparing Azure Load Balancer vs. Application Gateway
Feature | Azure Load Balancer | Azure Application Gateway |
OSI Layer | Layer 4 (Transport) | Layer 7 (Application) |
Traffic Type | TCP/UDP | HTTP/HTTPS |
Routing Decision | Based on IP and Port | Based on URL, Headers, and Cookies |
Security | Basic filtering | Web Application Firewall (WAF) |
SSL Termination | No | Yes |
Session Affinity | No | Yes (Cookie-based) |
URL-Based Routing | No | Yes |
Use Case | General traffic distribution | Web application traffic management |
When to Choose Azure Load Balancer vs. Application Gateway
Choose Azure Load Balancer if you need high-performance, transport-layer load balancing for TCP and UDP traffic without content-based routing.
Choose Azure Application Gateway if you need advanced Layer 7 capabilities such as SSL offloading, URL-based routing, and security with WAF.
Combine Both – For comprehensive load balancing, you can use Azure Load Balancer for non-HTTP traffic and Application Gateway for web traffic.
Conclusion
Understanding the distinctions between Azure Load Balancer and Azure Application Gateway is essential for designing resilient and efficient cloud applications. By aligning the choice of load balancing service with application requirements, organizations can enhance performance, ensure high availability, and improve security.
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Written by

Nam Nguyen
Nam Nguyen
Visit to see more: https://linktr.ee/nddnam I am an enthusiastic Network Engineer with 7+ years of experience working on MPLS L3VPN Network projects, Cisco SDWAN Deployment, and Enterprise Networks. I love to automate every daily task and think Dev-Ops as always. Thus, I am entering the DevNet world.