The following architecture diagram presents the sample setup that we'll use to explore the network traffic with different components. 

The setup comprises following components:

• A virtual network with a private subnet (i.e., a subnet that does not offer default outbound connectivity to the internet).
• A virtual machine (running Ubuntu Linux) connected to this subnet.
• A Key Vault including a stored secret as sample Azure PaaS service to explore Azure-bound connectivity.
• A Log Analytics Workspace, storing audit information (i.e., metadata of all control and data plane operations) from that Key Vault.
• A Bastion Host to securely connect to the virtual machine via SSH.

In the following sections, we will integrate following components to control the network traffic and explore the effects on communication flow:

• An Azure Firewall as central Network Virtual Appliance to route outbound internet traffic.
• An Azure Load Balancer with Outbound Rules to route Azure-bound traffic through the Azure Backbone (we'll use the Azure Resource Manager in this example).
• A Service Endpoint to route data plane operations directly to the service.

We'll use following examples to illustrate the communication paths:

• A simple http-call to ifconfig.io which (if successful) will return the public IP address that will be used to make calls to public internet resources.
• An invocation of the Azure CLI to get Key Vault metadata (az keyvault show), which (if successful) will return information about the Key Vault resources. This call to the Azure Resource Manager represents a management plane operation.
• An invocation of the Azure CLI to get a secret stored in the Key Vault (az keyvault secret show), which (if successful) will return a secret stored in the Key Vault. This represents a data plane operation.
• A query to the Key Vault's audit log (stored in the Log Analytics Workspace), to reveal the IP address of the caller for management and data plane operations.

The repository Azure-Samples/azure-networking_private-subnet-routing on GitHub contains all required Infrastructure as Code assets, allowing you to easily reproduce the setup and exploration in your own Azure subscription.

The implementation uses the following tools:

• bash as Command Line Interpreter (consider using Windows Subsystem for Linux if you are on Windows)
• git to clone the repository (find installation instructions here)
• Azure Command-Line Interface to interact with deployed Azure components (find installation instructions here)
• HashiCorp Terraform (find installation instructions here).
• jq to parse and process JSON input (find installation instructions here)

• Clone the Git repository from Azure-Samples/azure-networking_private-subnet-routing and change cd into its repository root.

  $ git clone https://github.com/Azure-Samples/azure-networking_private-subnet-routing
  $ cd azure-networking_private-subnet-routing
  

• Login to your Azure subscription via Azure CLI and ensure you have access to your subscription.

  $ az login
  
  $ az account show
  

We kick off our journey by deploying the infrastructure depicted in the architecture diagram above; we'll do that using the IaC (Infrastructure as Code) assets from the repository.

• Open file terraform.tfvars in your favorite code editor, and adjust the values of variables location (the region to which all resource will be deployed) and prefix (the shared name prefix for all resources). Also don't forget to provide login credentials for your VM by setting values for admin_username and admin_password.

• Set environment variable ARM_SUBSCRIPTION_ID to point terraform to the subscription you are currently logged on to.

  $ export ARM_SUBSCRIPTION_ID=$(az account show --query "id" -o tsv)
  

• Using your CLI and terraform, deploy the demo setup:

  $ terraform init
    Initializing the backend...
    [...]
    Terraform has been successfully initialized!
  
  $ terraform apply
    [...]
    Do you want to perform these actions?
    Terraform will perform the actions described above.
    Only 'yes' will be accepted to approve.
      Enter a value: yes
    [...]
  
    Apply complete!
    [...]
  

  ☝️ In case you are not familiar with Terraform, this tutorial might be insightful for you.

• Explore the deployed resources in the Azure Portal. Note that although the network infrastructure components shown in the architecture drawing above are already deployed, they are not yet configured for use from the Virtual Machine:

  • The Azure Firewall is deployed, but the route table attached to the VM subnet does not (yet) have any route directing traffic to the firewall (we will add this in Scenario 2).
  • The Azure Load Balancer is already deployed, but the virtual machine is not yet member of its backend pool (we will change this in Scenario 3).

• Log in to the Virtual Machine using the Bastion Host.

  $ ./scripts/ssh-bastion.sh
  azureuser@localhost's password:
  Welcome to Ubuntu 20.04.6 LTS (GNU/Linux 5.15.0-1064-azure x86_64)
  azureuser@no-doa-demo-vm:~$
  

At this point, our virtual machine is deployed to a private subnet. As we do not have any outbound connectivity method set up, all calls to public internet resources as well as to the public endpoints of Azure resources will time out.

• Test 1: Call to public internet

  $ curl ifconfig.io --connect-timeout 10
  curl: (28) Connection timed out after 10004 milliseconds
  

• Test 2: Call to Azure Resource Manager

  $ curl https://management.azure.com/ --connect-timeout 10
  curl: (28) Connection timed out after 10001 milliseconds
  

• Test 3: Call to Azure Key Vault (data plane)

  $ curl https://no-doa-demo-kv.vault.azure.net/ --connect-timeout 10
  curl: (28) Connection timed out after 10002 milliseconds
  

Typically, customers deploy a central Firewall in their network to ensure all outbound traffic is consistently SNATed through the same public IPs and all outbound traffic is centrally controlled and governed. In this scenario, we therefore modify our existing route table and add a default route (i.e., for CIDR range 0.0.0.0/0), directing all outbound traffic to the private IP of our Azure Firewall.

• Add Firewall and routes.

  • Browse to network.tf, uncomment the definition of azurerm_route.default-to-firewall.
  • Update your deployment.

    $ terraform apply 
      Terraform will perform the following actions:
        # azurerm_route.default-to-firewall will be created
      [...]
    

• Test 1: Call to public internet, revealing that outbound calls are routed through the firewall's public IP.

  $ curl ifconfig.io
  4.184.163.38
  

• Now that you have access to the internet, install Azure CLI.

  $ curl -sL https://aka.ms/InstallAzureCLIDeb | sudo bash
  

• Login to Azure with the Virtual machine's managed identity.

  $ az login --identity 
  

• Test 2: Call to Azure Resource Manager (you might need to change the Key Vault name if you changed the prefix in your terraform.tfvars)

  $ az keyvault show --name "no-doa-demo-kv" -o table
  Location            Name            ResourceGroup
  ------------------  --------------  --------------
  germanywestcentral  no-doa-demo-kv  no-doa-demo-rg
  

• Test 3: Call to Azure Key Vault (data plane)

  $ az keyvault secret show --vault-name "no-doa-demo-kv" --name message -o table
  ContentType    Name     Value
  -------------  -------  -------------
                 message  Hello, World!
  

   

• Query Key Vault Audit Log.

  ☝️ The ingestion of audit logs into the Log Analytics Workspace might take some time. Please make sure to wait for up to ten minutes before starting to troubleshoot.

  • Get Application ID of VM's system-assigned managed identity:

    $ ./scripts/vm_get-app-id.sh
    AppId for Principal ID f889ca69-d4b0-45a7-8300-0a88f957613e is: 8aa9503c-ee91-43ee-96c7-49dc005ebecc
    

  • Go to Log Analytics Workspace, run the following query.

    AzureDiagnostics | 
    where identity_claim_appid_g == "[Replace with App ID!]" 
    | project TimeGenerated, Resource, OperationName, CallerIPAddress 
    | order by TimeGenerated desc
    

    Alternatively, run the prepared script kv_query-audit.sh:

    $ ./scripts/kv_query-audit.sh
    CallerIPAddress    OperationName    Resource       TableName      TimeGenerated
    -----------------  ---------------  --------------  -------------  ----------------------------
    4.184.163.38       VaultGet         NO-DOA-DEMO-KV  PrimaryResult  2024-06-14T08:25:29.4821689Z
    4.184.163.38       SecretGet        NO-DOA-DEMO-KV  PrimaryResult  2024-06-14T08:26:07.0067419Z
    

🗣 Note that both calls to the Key Vault succeed as they are routed through the central Firewall; both requests (to Azure Management plane and Key Vault data plane) hit their endpoints with the Firewall's public IP.

At this point all, internet and Azure-bound traffic to public endpoints is routed through the Azure Firewall. Although this allows you to centrally control all traffic, you might have good reasons to prefer to offload some communication from this component by routing traffic targeting a specific IP address range through a different component for SNAT -- for example to optimize latency or reduce load on the firewall component for communication with well-known hosts.

☝️ As mentioned before, dedicated Public IP addresses, NAT Gateways and Azure Load Balancers are alternative options to configure SNAT for outbound access. You can find a detailed discussion about all options here.

In this scenario, we assume that we want network traffic to the Azure Management plane to bypass the central Firewall (we pick this service for demonstration purposes here). Instead, we want to use the SNAT capabilities of an Azure Load Balancer with outbound rules to route traffic to the public endpoints of the Azure Resource Manager. We can achieve this by adding a more-specific route to the route table, directing traffic targeting the corresponding service tag (which is like a symbolic name comprising a set of IP ranges) to a different destination.

The integration of outbound load balancing rules into the communication path works differently than integrating a Network Virtual Appliance: While we defined the latter by setting the NVA's private IP address as next hop in our user defined route in scenario 1, we only integrate the Load Balancer implicitly into our network flow -- by specifying Internet as next hop in our route table. (Essentially, next hop 'Internet' instructs Azure to use either (a) the Public IP attached to the VM's NIC, (b) the Load Balancer associated to the VM's NIC with the help of an outbound rule, or (c) a NAT Gateway attached to the subnet the VM's NIC is connected to.) Therefore, we need to take two steps to send traffic through our Load Balancer:

• Deploy a more-specific user-defined route for the respective service tag.
• Add our VM's NIC to a load balancer's backend pool with an outbound load balancing rule.

In our scenario, we'll do this for the Service tag AzureResourceManager, which (amongst others) also comprises the IP addresses for management.azure.com, which is the endpoint for the Azure control plane. This will affect the az keyvault get operation to retrieve the Key Vault's metadata.

• Add more specific route for AzureResourceManager

  • Browse to network.tf, uncomment the definition of azurerm_route.azurerm_2_internet.

    ☝️ Note that this route specifies Internet (!) as next hop type for any communication targeting IPs of service tag AzureResourceManager.

  • Update your deployment.

    $ terraform apply
      Terraform will perform the following actions:
        # azurerm_route.azurerm_2_internet will be created
      [...]
    

• (optional) Repeat test 1 (call to public internet) and test 3 (call to Key Vault's data plane) to confirm behavior remains unchanged.

  $ curl ifconfig.io
  4.184.163.38
  
  $ az keyvault secret show --vault-name "no-doa-demo-kv" --name message -o table
  ContentType    Name     Value
  -------------  -------  -------------
                 message  Hello, World!
  

• Test 2: Call to Azure Resource Manager

  $ az keyvault show --name "no-doa-demo-kv" -o table
  <urllib3.connection.HTTPSConnection object at 0x7f76628435d0>: Failed to establish a new connection: [Errno 101] Network is unreachable
  

🗣 While the call to the Key Vault data plane succeeds, the call to the resource manager fails: Route azurerm_2_internet directs traffic to next hop type Internet. However, as the VM's subnet is private, defining the outbound route is not sufficient and we still need to attach the VM's NIC to the Load Balancers outbound rule.

• Add virtual machine's NIC to a backend pool linked with an outbound load balancing rule.

  • Browse to vm.tf, uncomment the definition of azurerm_network_interface_backend_address_pool_association.vm-nic_2_lb.

  • Update your deployment.

    $ terraform apply
      Terraform will perform the following actions:
        # azurerm_network_interface_backend_address_pool_association.vm-nic_2_lb will be created
      [...]
    

• (optional) Repeat test 1 (call to public internet) and test 3 (call to Key Vault's data plane) to confirm behavior remains unchanged.

• Repeat Test 2: Call to Azure Resource Manager

  $ az keyvault show --name "no-doa-demo-kv" -o table
  Location            Name            ResourceGroup
  ------------------  --------------  ---------------
  germanywestcentral  no-doa-demo-kv  no-doa-demo-rg
  

• Re-run the prepared script kv_query-audit.sh:

  $ ./scripts/kv_query-audit.sh
  CallerIPAddress    OperationName    Resource        TableName      TimeGenerated
  -----------------  ---------------  --------------  -------------  ----------------------------
  4.184.163.38       SecretGet        NO-DOA-DEMO-KV  PrimaryResult  2024-06-17T12:49:30.7165964Z
  4.184.161.169      VaultGet         NO-DOA-DEMO-KV  PrimaryResult  2024-06-17T12:44:35.6599439Z
  [...]
  

🗣 After adding the NIC to the backend of the outbound load balancer, routes with next hop type Internet will use the load balancer for outbound traffic. As we specified Internet as next hop type for AzureResourceManager, the VaultGet operation is now hitting the management plane from the load balancer's public IP. (Communication with the Key Vault data plane remains unchanged; the SecretGet operation still hits the Key Vault from the Firewall's Public IP.)

☝️ We explored this path for the platform-defined service tag AzureResourceManager. However, it's equally possible to define this communication path for your self-defined IP addresses or ranges.

For communication with many platform services, Azure offers customers Virtual Network Service Endpoints to enable an optimized connectivity method that keeps traffic on its backbone network. Customers can use this, for example, to offload traffic to platform services from their network resources and increase security by enabling access restrictions on their resources.

☝️ Note that service endpoints are not specific for individual resource instances; they will enable optimized connectivity for all deployments of this resource type (across different subscriptions, tenants and customers). You may want to make sure to deploy complementing firewall rules to your resource as an additional layer of security.

In this scenario, we'll deploy a service endpoint for Azure Key Vaults. We'll see that the platform will no longer SNAT traffic to our Kay Vault's data plane but use the VM's private IP for communication.

• Deploy Service Endpoint for Key Vault

  • Browse to network.tf, uncomment the definition of serviceEndpoints in azapi_resource.subnet-vm.

  • Update your deployment.

    $ terraform apply
      Terraform will perform the following actions:
        # azapi_resource.subnet-vm will be updated in-place
      [...]
    

• (optional) Repeat test 1 (call to public internet) and test 2 (call to Azure management plane) to confirm behavior remains unchanged.

• Test 3: Call to Azure Key Vault (data plane)

  $ az keyvault secret show --vault-name "no-doa-demo-kv" --name message -o table
  ContentType    Name     Value
  -------------  -------  -------------
                 message  Hello, World!
  

• Re-run the prepared script kv_query-audit.sh:

  $ ./scripts/kv_query-audit.sh
  CallerIPAddress    OperationName    Resource        TableName      TimeGenerated
  -----------------  ---------------  --------------  -------------  ----------------------------
  10.3.1.4           SecretGet        NO-DOA-DEMO-KV  PrimaryResult  2024-06-17T14:21:28.3388285Z
  [...]
  

🗣 After deploying a service endpoint, we see that traffic is hitting the Azure Key Vault data plane from the virtual machine's private IP address, i.e., not passing through Firewall or outbound load balancer.

Eventually, let's explore how the different connectivity methods show up in the virtual machine's NIC's effective routes. Use one of the following options to show them:

• In Azure portal, browse to the VM's NIC and explore the 'Effective Routes' section in the 'Help' section.

• Alternatively, run the provided script (please note that the script will only show the first IP address prefix in the output for brevity).

  $ ./scripts/vm-nic_show-routes.sh
  Source    FirstIpAddressPrefix    NextHopType                    NextHopIpAddress
  --------  ----------------------  -----------------------------  ------------------
  Default   10.0.0.0/16             VnetLocal
  User      191.234.158.0/23        Internet
  Default   0.0.0.0/0               Internet
  Default   191.238.72.152/29       VirtualNetworkServiceEndpoint
  User      0.0.0.0/0               VirtualAppliance               10.254.1.4
  

🗣 See that... 

• ...system-defined route 191.238.72.152/29 to VirtualNetworkServiceEndpoint is sending traffic to Azure Key Vault data plane via service endpoint.
• ...user-defined route 191.234.158.0/23 to Internet is implicitly sending traffic to AzureResourceManager via Outbound Load Balancer (by defining Internet as next hop type for a VM attached to an outbound load balancer rule).
• ...user-defined route 0.0.0.0/0 to VirtualAppliance (10.254.1.4) is sending all remaining internet-bound traffic to the Firewall.