A Guide to Azure Data Transfer Pricing
Understanding Azure networking charges is essential for businesses aiming to manage their budgets effectively. Given the complexity of Azure networking pricing, which involves various influencing factors, the goal here is to bring a clearer understanding of the associated data transfer costs by breaking down the pricing models into the following use cases: VM to VM VM to Private Endpoint VM to Internal Standard Load Balancer (ILB) VM to Internet Hybrid connectivity Please note this is a first version, with a second version to follow that will include additional scenarios. Disclaimer: Pricing may change over time, check the public Azure pricing calculator for up-to-date pricing information. Actual pricing may vary depending on agreements, purchase dates, and currency exchange rates. Sign in to the Azure pricing calculator to see pricing based on your current program/offer with Microsoft. 1. VM to VM 1.1. VM to VM, same VNet Data transfer within the same virtual network (VNet) is free of charge. This means that traffic between VMs within the same VNet will not incur any additional costs. Doc. Data transfer across Availability Zones (AZ) is free. Doc. 1.2. VM to VM, across VNet peering Azure VNet peering enables seamless connectivity between two virtual networks, allowing resources in different VNets to communicate with each other as if they were within the same network. When data is transferred between VNets, charges apply for both ingress and egress data. Doc: VM to VM, across VNet peering, same region VM to VM, across Global VNet peering Azure regions are grouped into 3 Zones (distinct from Avaialbility Zones within a specific Azure region). The pricing for Global VNet Peering is based on that geographic structure. Data transfer between VNets in different zones incurs outbound and inbound data transfer rates for the respective zones. When data is transferred from a VNet in Zone 1 to a VNet in Zone 2, outbound data transfer rates for Zone 1 and inbound data transfer rates for Zone 2 will be applicable. Doc. 1.3. VM to VM, through Network Virtual Appliance (NVA) Data transfer through an NVA involves charges for both ingress and egress data, depending on the volume of data processed. When an NVA is in the path, such as for spoke VNet to spoke VNet connectivity via an NVA (firewall...) in the hub VNet, it incurs VM to VM pricing twice. The table above reflects only data transfer charges and does not include NVA/Azure Firewall processing costs. 2. VM to Private Endpoint (PE) Private Endpoint pricing includes charges for the provisioned resource and data transfer costs based on traffic direction. For instance, writing to a Storage Account through a Private Endpoint incurs outbound data charges, while reading incurs inbound data charges. Doc: 2.1. VM to PE, same VNet Since data transfer within a VNet is free, charges are only applied for data processing through the Private Endpoint. Cross-region traffic will incur additional costs if the Storage Account and the Private Endpoint are located in different regions. 2.2. VM to PE, across VNet peering Accessing Private Endpoints from a peered network incurs only Private Link Premium charges, with no peering fees. Doc. VM to PE, across VNet peering, same region VM to PE, across VNet peering, PE region != SA region 2.3. VM to PE, through NVA When an NVA is in the path, such as for spoke VNet to spoke VNet connectivity via a firewall in the hub VNet, it incurs VM to VM charges between the VM and the NVA. However, as per the PE pricing model, there are no charges between the NVA and the PE. The table above reflects only data transfer charges and does not include NVA/Azure Firewall processing costs. 3. VM to Internal Load Balancer (ILB) Azure Standard Load Balancer pricing is based on the number of load balancing rules as well as the volume of data processed. Doc: 3.1. VM to ILB, same VNet Data transfer within the same virtual network (VNet) is free. However, the data processed by the ILB is charged based on its volume and on the number load balancing rules implemented. Only the inbound traffic is processed by the ILB (and charged), the return traffic goes direct from the backend to the source VM (free of charge). 3.2. VM to ILB, across VNet peering In addition to the Load Balancer costs, data transfer charges between VNets apply for both ingress and egress. 3.3. VM to ILB, through NVA When an NVA is in the path, such as for spoke VNet to spoke VNet connectivity via a firewall in the hub VNet, it incurs VM to VM charges between the VM and the NVA and VM to ILB charges between the NVA and the ILB/backend resource. The table above reflects only data transfer charges and does not include NVA/Azure Firewall processing costs. 4. VM to internet 4.1. Data transfer and inter-region pricing model Bandwidth refers to data moving in and out of Azure data centers, as well as data moving between Azure data centers; other transfers are explicitly covered by the Content Delivery Network, ExpressRoute pricing, or Peering. Doc: 4.2. Routing Preference in Azure and internet egress pricing model When creating a public IP in Azure, Azure Routing Preference allows you to choose how your traffic routes between Azure and the Internet. You can select either the Microsoft Global Network or the public internet for routing your traffic. Doc: See how this choice can impact the performance and reliability of network traffic: By selecting a Routing Preference set to Microsoft network, ingress traffic enters the Microsoft network closest to the user, and egress traffic exits the network closest to the user, minimizing travel on the public internet (“Cold Potato” routing). On the contrary, setting the Routing Preference to internet, ingress traffic enters the Microsoft network closest to the hosted service region. Transit ISP networks are used to route traffic, travel on the Microsoft Global Network is minimized (“Hot Potato” routing). Bandwidth pricing for internet egress, Doc: 4.3. VM to internet, direct Data transferred out of Azure to the internet incurs charges, while data transferred into Azure is free of charge. Doc. It is important to note that default outbound access for VMs in Azure will be retired on September 30 2025, migration to an explicit outbound internet connectivity method is recommended. Doc. 4.4. VM to internet, with a public IP Here a standard public IP is explicitly associated to a VM NIC, that incurs additional costs. Like in the previous scenario, data transferred out of Azure to the internet incurs charges, while data transferred into Azure is free of charge. Doc. 4.5. VM to internet, with NAT Gateway In addition to the previous costs, data transfer through a NAT Gateway involves charges for both the data processed and the NAT Gateway itself, Doc: 5. Hybrid connectivity Hybrid connectivity involves connecting on-premises networks to Azure VNets. The pricing model includes charges for data transfer between the on-premises network and Azure, as well as any additional costs for using Network Virtual Appliances (NVAs) or Azure Firewalls in the hub VNet. 5.1. H&S Hybrid connectivity without firewall inspection in the hub For an inbound flow, from the ExpressRoute Gateway to a spoke VNet, VNet peering charges are applied once on the spoke inbound. There are no charges on the hub outbound. For an outbound flow, from a spoke VNet to an ER branch, VNet peering charges are applied once, outbound of the spoke only. There are no charges on the hub inbound. Doc. The table above does not include ExpressRoute connectivity related costs. 5.2. H&S Hybrid connectivity with firewall inspection in the hub Since traffic transits and is inspected via a firewall in the hub VNet (Azure Firewall or 3P firewall NVA), the previous concepts do not apply. “Standard” inter-VNet VM-to-VM charges apply between the FW and the destination VM : inbound and outbound on both directions. Once outbound from the source VNet (Hub or Spoke), once inbound on the destination VNet (Spoke or Hub). The table above reflects only data transfer charges within Azure and does not include NVA/Azure Firewall processing costs nor the costs related to ExpressRoute connectivity. 5.3. H&S Hybrid connectivity via a 3rd party connectivity NVA (SDWAN or IPSec) Standard inter-VNet VM-to-VM charges apply between the NVA and the destination VM: inbound and outbound on both directions, both in the Hub VNet and in the Spoke VNet. 5.4. vWAN scenarios VNet peering is charged only from the point of view of the spoke – see examples and vWAN pricing components. Next steps with cost management To optimize cost management, Azure offers tools for monitoring and analyzing network charges. Azure Cost Management and Billing allows you to track and allocate costs across various services and resources, ensuring transparency and control over your expenses. By leveraging these tools, businesses can gain a deeper understanding of their network costs and make informed decisions to optimize their Azure spending.
Utilizing Azure Key vault with Private link in DevOps
Azure Key Vault is a cloud service that provides secure storage and access to secrets such as API keys, passwords, certificates, or cryptographic keys. To enhance security and disable public access, Azure Key Vault can be integrated with Private Endpoint powered by Azure Private Link. This private endpoint uses a private IP address from your VNet and brings the service into your VNet, effectively eliminating exposure from the public Internet by traversing traffic between your virtual network and the service over the Microsoft backbone network.Introducing Private Link based networking with Azure Database for PostgreSQL – Flexible Server
Today we are proud to announce preview of Azure Private Link support for private networking with Azure Database for PostgreSQL - Flexible server, in addition to already existing networking capabilities provided by VNET injection.
Resolving private-link resource internal ip from VPN
Using a Point-To-Site VPN to connect my PC to an Azure VNET (e.g. 10.99.0.0/16), and then Private Link to publish my PaaS services as end-points into a subnet in this VNET (e.g. 10.99.2.0/24), I'm trying to understand how I resolve the internal IP of the PaaS resource from my PC. My configuration: VNET: 10.99.0.0/24 subnetVM: 10.99.1.0/24 subnetPaaS: 10.99.2.0/24 SubnetVPN: 10.99.99.0/24 VPN client adress pool: 172.20.20.0/24 If I create a VM in this VNET (e.g. 10.99.1.4), I get 168.63.129.16 as the DNS server and using: nslookup paasServicePublicDns or: nslookup paasServicePublicDns 168.63.129.16 will correctly give me the internal IP for the PaaS service (i.e. 10.99.2.4) But from my PC (connected via VPN to 10.99.99.0/24), using: nslookup paasServicePublicDns 168.63.129.16 will only give me the external/public IP for the PaaS service ok, the 168.63.129.16 adress might not be routed to the VPN VNET, so I also added this route to my PC: route add 168.63.129.16 MASK 255.255.255.255 172.20.20.4 (172.20.20.4 is my VPN endpoint on my PC) route print -4 | FIND "172.20.20.4": ---> Active Routes: Network Destination Netmask Gateway Interface Metric 10.99.0.0 255.255.0.0 On-link 172.20.20.4 43 10.99.255.255 255.255.255.255 On-link 172.20.20.4 281 168.63.129.16 255.255.255.255 On-link 172.20.20.4 26 172.20.20.0 255.255.255.0 On-link 172.20.20.4 43 172.20.20.4 255.255.255.255 On-link 172.20.20.4 281 172.20.20.255 255.255.255.255 On-link 172.20.20.4 281 224.0.0.0 240.0.0.0 On-link 172.20.20.4 281 255.255.255.255 255.255.255.255 On-link 172.20.20.4 281 <--- And to make sure the VPN connection has a DNS server defined I also added 168.63.129.16 as the DNS server for the VPN connection: ---> PPP adapter VNET-VPN: Connection-specific DNS Suffix . : Description . . . . . . . . . . . : VNET-VPN Physical Address. . . . . . . . . : DHCP Enabled. . . . . . . . . . . : No Autoconfiguration Enabled . . . . : Yes IPv4 Address. . . . . . . . . . . : 172.20.20.4(Preferred) Subnet Mask . . . . . . . . . . . : 255.255.255.255 Default Gateway . . . . . . . . . : DNS Servers . . . . . . . . . . . : 168.63.129.16 NetBIOS over Tcpip. . . . . . . . : Enabled <--- But still I can't get and IP adress resolved. Any ideas why this is not working?Effortless Private Endpoint Management in Azure Landing Zones: A Streamlined and Compliant Approach
Azure Landing Zones empower workload owners to deploy infrastructure while adhering to corporate policies. However, managing Private Endpoints can be challenging without granting excessive access. This article introduces a custom role for Subscription Owners, allowing them to manage Private Endpoints efficiently and securely. By ensuring compliance with Azure Landing Zone policies and minimizing access permissions, this streamlined approach simplifies Azure deployments. Curious about how this can enhance your Azure experience? Dive into the full article!Azure Virtual Network routing appliance is now generally available
Modern cloud networks are evolving faster than ever. Organizations are building larger AI platforms, connecting more services through private connectivity, adopting IPv6, and expanding applications across regions and business units. As these environments grow, the network becomes a critical foundation for delivering performance, resiliency, and operational simplicity. Today, we're excited to announce the general availability of Azure Virtual Network routing appliance, a managed, platform-native routing service designed to provide high-performance connectivity across Azure virtual networks at cloud scale. Virtual Network routing appliance brings together Azure-native operations, specialized networking infrastructure, built-in resiliency, and high-bandwidth forwarding to help organizations build the next generation of cloud network architectures. Built for the era of AI infrastructure AI is changing the scale at which networks operate. Training clusters, inference services, analytics platforms, data processing pipelines, and distributed application environments generate unprecedented volumes of east-west traffic. These workloads require high-performance connectivity between services, networks, and regions while maintaining operational simplicity. Virtual Network routing appliance provides a managed routing foundation for these environments, enabling organizations to scale network connectivity alongside their AI investments. Instead of building and operating custom routing infrastructure, teams can focus on accelerating innovation, deploying new services, and delivering business outcomes. Scale hub-and-spoke architectures Hub-and-spoke remains one of the most widely adopted network architectures in Azure because it provides centralized governance, simplified operations, and efficient connectivity. As organizations expand, however, these architectures often grow from a handful of virtual networks into hundreds or even thousands of connected environments. Virtual Network routing appliance enables customers to scale these architectures while maintaining a consistent operational model. By providing a dedicated routing layer within the hub, Virtual Network routing appliance simplifies connectivity between applications, shared services, and business units while supporting the scale required by modern enterprise environments. The result is a network architecture that remains manageable even as organizational growth accelerates. Unlock large-scale private connectivity Private connectivity has become the default connectivity model for modern cloud deployments. Applications, databases, platforms, shared services, and partner solutions increasingly depend on private communication patterns across Azure environments. Virtual Network routing appliance provides a centralized routing foundation that helps customers build and scale these architectures while maintaining a consistent private networking experience across their environments. Virtual Network routing appliance can also help scale Private Endpoint connectivity beyond the current 20,000-endpoint HSPE boundary. Looking ahead, it establishes a foundation for further accelerating private connectivity to on-premises environments, without introducing additional architectural specifics. As organizations continue consolidating services onto private connectivity models, Virtual Network routing appliance provides the performance and scale needed to support long-term growth. Accelerate your IPv6 journey IPv6 adoption continues to grow across enterprise, telecommunications, and cloud environments. Organizations increasingly need network architectures capable of supporting IPv4, IPv6, and dual-stack deployments while maintaining operational consistency. Virtual Network routing appliance supports IPv4, IPv6, and dual-stack virtual networks, enabling customers to modernize network architectures and expand address space without introducing new operational complexity. Whether organizations are beginning their IPv6 transition or building IPv6-first architectures, Virtual Network routing appliance provides a consistent routing foundation across both address families. Simplify multi-region architectures Modern applications rarely live within a single region. Organizations increasingly deploy workloads globally to improve performance, resiliency, business continuity, and regulatory compliance. These architectures require a networking foundation capable of supporting connectivity across regions while remaining simple to operate and govern. Virtual Network routing appliance helps customers build scalable multi-region network architectures by providing a centralized, high-performance routing layer that integrates naturally into Azure networking designs. This allows teams to focus on application architecture and customer experience rather than operational management of routing infrastructure. Built for enterprise scale As organizations continue to grow, networking teams face a common challenge: supporting increasing scale without increasing operational complexity. Virtual Network routing appliance was designed to meet this challenge by combining: High-performance routing using specialized Azure networking infrastructure Built-in resiliency and availability zone support Native Azure management and governance integration Support for IPv4, IPv6, and dual-stack deployments Integrated monitoring and observability through Azure Monitor metrics available Configurable bandwidth tiers for production workloads Future support for scaling Private Endpoints beyond 20,000 These capabilities allow customers to build large-scale networking architectures while maintaining a familiar Azure-native operational experience. Learn more Azure Virtual Network routing appliance is more than a new networking resource. It is a foundational building block for the next generation of Azure networking. Organizations are continuing to build larger AI platforms, expand private connectivity, increase multi-region deployments, and modernize network architectures. These transformations require a routing foundation that can scale alongside them. Virtual Network routing appliance provides that foundation, delivering the performance, scale, resiliency, and operational simplicity required for modern cloud networks. Whether you're building an AI platform, expanding a hub-and-spoke architecture, scaling private connectivity, enabling IPv6, or designing a global application footprint, Azure Virtual Network routing appliance helps simplify networking so you can focus on what matters most: delivering innovation faster. Overview of Routing Appliances - Azure Virtual Network | Microsoft Learn
Secure Your Machine Learning Workspace with Virtual Network
Discover how to secure your machine learning workspace and its components with a virtual network! Learn about the benefits of using a virtual network, including enhanced security, improved performance, and increased flexibility. Understand the potential drawbacks, such as increased complexity, additional cost, and compatibility issues. Explore the option of using a Microsoft managed virtual network workspace for simplified setup, network isolation, optimized security, and seamless integration.
