What Is a Virtual Machine (VM) — and What Should Nonprofits Know Before Deploying One in Azure?

At the heart of this post is Kairos IMS, an innovative Impact Management System designed to empower human-serving nonprofits and social impact organizations. Co-developed by the Urban League of Broward County and our trusted technology partner, Impactful, Kairos IMS reduces administrative burdens, enhances holistic care, and enables organizations to leverage data for increased agility and seamless service delivery. In this blog series, we’ll take a closer look at the powerful technologies that fuel Kairos IMS, from Azure services to security frameworks, offering insight into how modern infrastructure supports mission-driven impact. Click here  to learn more. 

 

First, What Is a Virtual Machine? 

A Virtual Machine is a simulated computer running in the cloud. Think of it like renting a computer in Microsoft’s datacenter. You can install programs, store files, and run services—just like you would on a laptop or desktop—but it lives entirely online. 

In Azure, a VM gives your nonprofit a dedicated environment to host: 

• A website or intranet 

• A custom-built database or tool 

• An open-source platform (like Moodle or WordPress) 

• File storage or backup systems 

• AI or data-processing tasks 

Why Use a VM Instead of a SaaS Tool? 

Unlike Software as a Service (SaaS), a VM gives you full control over the environment: 

• You choose the operating system (Linux or Windows) 

• You control when and how updates happen 

• You decide how it integrates with your network or data 

This flexibility is especially useful for nonprofits with unique needs or legacy tools that won’t run in a SaaS setup. 

Key Considerations When Choosing a VM in Azure 

When setting up a VM, Azure gives you lots of dropdowns to choose from. These options directly affect cost, performance, and usability—so here’s some of the options you will see in the Azure Pricing Calculator and when creating a VM in Azure, as well as what they mean: 

Settings

Basic Details

• VM Name & Region: Choose a data center close to your users to reduce latency and potentially lower costs. Nonprofits with privacy concerns should check data residency policies.

 

• Availability Options: Decide how fault-tolerant your VM needs to be. Options include:
  • Single VM (no redundancy)
  • Availability Zones: VMs spread across different physical locations—ideal for disaster recovery.
  • Azure-selected zone: Automatically assigned for simplicity.

🗨️ More information about the options above:

Reliability & Redundancy 

It is all about minimizing downtime and protecting against failures.

Azure offers: 

• Availability Zones: Protect against datacenter failure 

• Availability Sets: Distribute across racks in the same region 

• Premium SSDs: For high-speed, reliable storage 

These improve uptime, but also raise the price. 

✅ Tip: If your nonprofit is hosting something critical (e.g., a public website or case management system), consider an Availability Zone for reliability. 

✅ Why Redundancy Matters for Nonprofits:

• Keeps mission-critical apps and data available even during outages.
• Helps maintain donor trust and service delivery.
• Reduces the need for expensive recovery or intervention.

Image & Operating System (OS)
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What is an "image"? 

An "image" refers to a pre-configured template used to create your virtual machine. It includes the operating system (like Windows Server or Ubuntu) and may also contain pre-installed applications or settings. Choosing the right image determines what software environment your VM starts with.

For example:

• Ubuntu Server: A free, Linux-based OS.
• Windows Server with SQL: Includes Windows OS and Microsoft SQL Server.
• Custom image: You can use one you’ve created for consistency across deployments.

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• Image: Choose from common OS options (Ubuntu, Windows Server, etc.). Open-source Linux options are often free and secure—ideal for nonprofits trying to lower licensing costs.
• Architecture: ARM64 or x64—this affects compatibility with certain software.

 

🖥️ Operating System vs. Windows License

• Linux VMs are usually cheaper and popular for open-source apps. 

• Windows VMs include additional licensing costs. 

⚠️ If you pick a Windows VM, Azure automatically includes a Windows Server license fee—this can nearly double the cost compared to Linux. 

Tip: If you don’t need Windows-specific programs, go with Linux to save your nonprofit budget. 

Sizing and Pricing

• VM Size: Defines compute power (vCPUs, RAM). Use the Azure Pricing Calculator to estimate monthly costs by selecting different VM types and configurations.
• Spot Pricing: Drastically reduces cost if you’re flexible on uptime—great for batch jobs or training models.

VM Size & Series (Performance vs. Price)

In the calculator or portal, you’ll see series like: 

• B-series: Low-cost, ideal for development or light workloads 

• D-series: General-purpose, good for websites or basic servers 

• E-series: Optimized for memory-intensive applications 

• F/H-series: High compute power (for data crunching, AI) 

Each series has sizes like B1s, D2s_v3, etc.—larger numbers mean more CPU and RAM, but also higher cost. 

✅ Tip: For most nonprofits running a basic tool or website, a B-series or small D-series VM is usually enough. 

Authentication

When you choose a Linux or Ubuntu image there will be an option to choose an SSH key or password. 

SSH vs Password: For Linux VMs, SSH is more secure. Azure can even generate keys for you.

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What Are Keys in Azure VM Authentication you may ask?

SSH keys (Secure Shell keys) are a more secure alternative to using passwords when accessing a virtual machine.

They consist of two parts:

• Public Key – This is stored in Azure (on your VM) when the VM is created.
• Private Key – This stays with you (typically on your local machine). You use this to log in to your VM.

When you try to connect to the VM via SSH, Azure checks if your private key matches the public key stored on the VM. If it does, you’re granted access.

Why Use SSH Keys?

• Stronger security: Harder to brute-force than passwords.
• No need to remember complex passwords.
• Often required for Linux VMs by default in Azure.

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Inbound Ports

Opening ports (like SSH or HTTP) lets you remotely access your VM. For production use, limit open ports or configure firewalls to only allow access from trusted IPs.

• An inbound port is like a door that allows specific types of internet traffic to enter your virtual machine (VM) from the outside world.

Common Inbound Ports and What They’re For:

• Port 22 – SSH: Used to remotely connect to Linux VMs.
• Port 3389 – RDP: Used for Remote Desktop access to Windows VMs.
• Port 80 – HTTP: Used to host websites (unencrypted).
• Port 443 – HTTPS: Used to host secure websites (encrypted).

Why Does This Matter?

• Security: Leaving ports open can expose your VM to attacks. Only open what you need.
• Connectivity: If a port isn’t open, users (or you) may not be able to connect to the service running inside your VM

Disks

Your virtual machine needs a disk to run—just like a physical computer. Azure gives you a default OS (operating system) disk, where the VM’s system files live. You can pick disk type based on performance and cost (e.g., Premium SSD for speed, Standard HDD for savings).

Need more space? Add data disks for documents, databases, or files. You can also choose whether disks should be automatically deleted when the VM is removed—great for cleanup.

Key Disk Options for Nonprofits:

• OS Disk Type: Choose Standard HDD (cheaper) or Premium SSD (faster).
• Data Disks: Attach additional storage if needed.
• Ultra Disk Compatibility: For high-performance scenarios—rarely needed in nonprofit workloads.

Networking

When setting up a virtual machine, Azure asks how it should connect to the internet or other resources. This is handled through a network interface card (NIC), which acts like the VM's virtual plug into a network. You can assign a public IP address so it's reachable from the outside world (like for a website), or keep it private for internal use only.

Key Networking Options for Nonprofits:

• Virtual Network & Public IP: Every VM needs network access; Azure sets this up automatically or lets you customize.
• NIC Security Groups: Define firewall-like rules. Hosting a public app? Allow HTTP/HTTPS.
• Accelerated Networking: Boosts performance—useful for apps with high traffic.
• Load Balancing:
  • Azure Load Balancer: Distributes general traffic.
  • Application Gateway: Best for public sites; supports SSL, firewalls, and routing.

Security and Updates

Azure VMs include: 

• Automatic security updates 

• Role-based access control (RBAC) 

• Integration with Microsoft Defender for Cloud 

But you are responsible for keeping your software updated, configuring firewalls, and installing antivirus if needed. 

✅ Tip: If your team isn’t technical, consider pairing the VM with Azure Backup and Azure Security Center for peace of mind. 

💰 Use the Azure Pricing Calculator to Estimate Costs 

Visit the Azure Pricing Calculator and add a Virtual Machine. You’ll see all the dropdowns we covered: 

• Region 

• OS 

• Series and size 

• Storage type 

• Hours per month 

• Licensing options 

As a nonprofit, you’re eligible for $2,000/year in free Azure credits—so be sure to factor that in when budgeting! 

✅ Tip: Once you select your options, the calculator shows an estimated monthly price. You can save the estimate or share it with a partner or IT lead. 

In Conclusion

Virtual Machines give nonprofits powerful flexibility to build and host their own tools—but they come with complexity. Before spinning one up, think about: 

• What problem are we solving? 

• Do we have the skills (or a partner) to manage it? 

• Could a SaaS or low-code tool meet this need instead? 

For those times when you do need to deploy in Azure, the key is to start small, plan carefully, and use the right tools (like the calculator) to avoid surprises.