Azure Virtual Machines

Overview

Azure Virtual Machines enable users to provision virtualized computing environments on demand, offering a range of operating systems including various distributions of Linux and Windows Server. These VMs serve as the foundation for infrastructure-as-a-service (IaaS) offerings within the Azure cloud, providing the flexibility to run custom applications, development and testing environments, and scale infrastructure globally. Azure VMs are designed for scenarios requiring precise control over the operating system, middleware, and application stack, making them suitable for migrating existing on-premises workloads to the cloud without significant refactoring.

The service supports a broad spectrum of instance types, optimized for different workloads such as general purpose, memory-optimized, compute-optimized, storage-optimized, and high-performance computing (HPC). Specific offerings like Windows Virtual Machines and Linux Virtual Machines cater to different operating system preferences, while Confidential VMs offer enhanced data protection in use. For specialized enterprise applications, SAP on Azure VMs provides certified configurations. Users can select from various machine sizes, storage options, and networking configurations to match performance requirements and budget constraints. Management is facilitated through the Azure portal, Azure CLI, Azure PowerShell, and a comprehensive set of SDKs, allowing for programmatic control and automation.

Azure VMs are particularly suited for enterprise environments due to their robust compliance certifications, including ISO 27001, HIPAA, and GDPR, which address common regulatory requirements. The platform supports hybrid cloud strategies by integrating with on-premises infrastructure, allowing for seamless extension of data centers. For workloads that can tolerate interruptions, Azure Spot Virtual Machines offer significant cost savings. The scalability of Azure VMs enables organizations to provision resources quickly to meet fluctuating demand, from development and testing to large-scale production deployments and high-performance computing clusters, as noted by industry analyses of cloud infrastructure platforms like those provided by The New Stack's IaaS overview.

Key features

• Wide OS support: Deploy virtual machines running Windows Server, various Linux distributions (Ubuntu, Red Hat Enterprise Linux, SUSE, CentOS), and custom images.
• Scalability and elasticity: Easily scale VM resources up or down, or out with Virtual Machine Scale Sets, to meet changing workload demands.
• Diverse VM sizes: Choose from a range of VM series optimized for general purpose, compute, memory, storage, and GPU-intensive workloads.
• Hybrid capabilities: Seamlessly connect Azure VMs with on-premises networks and infrastructure using Azure VPN Gateway or Azure ExpressRoute.
• Security and compliance: Built-in security features, including Azure Security Center, network security groups, and compliance with standards such as ISO 27001, HIPAA, and GDPR.
• Managed Disks: Azure manages the storage accounts associated with VM disks, simplifying disk management and enhancing data durability.
• High Availability: Implement Availability Zones and Availability Sets to ensure application uptime during planned and unplanned maintenance events.
• Cost Optimization: Offers options like Reserved Instances for discounted rates on predictable workloads and Spot Virtual Machines for fault-tolerant applications.

Pricing

Azure Virtual Machines pricing is dynamic and depends on factors such as VM size, region, operating system, storage type, and networking egress. As of May 2026, the primary pricing models include:

• Pay-as-you-go: Users pay only for the compute capacity consumed on an hourly basis, with no upfront commitment.
• Reserved Instances (RIs): Significant discounts (up to 72% compared to pay-as-you-go) are available for committing to 1-year or 3-year terms.
• Azure Spot Virtual Machines: Offers deep discounts for workloads that can tolerate interruptions, leveraging unused Azure capacity.
• Hybrid Benefit: Customers with existing Windows Server or SQL Server licenses with Software Assurance can bring them to Azure, reducing VM costs.

A B1s Linux VM, for example, can start at approximately $0.006/hour, though actual costs vary by region and specific configurations. Storage, networking, and additional services are billed separately. For detailed and up-to-date pricing, consult the Azure Virtual Machines pricing page.

Common integrations

• Azure Virtual Network: For secure and isolated network connectivity between VMs and other Azure services. Learn more about Azure Virtual Network.
• Azure Storage: Integrate with Azure Blob Storage for object storage, Azure Files for shared file storage, and Managed Disks for VM persistence.
• Azure Monitor: Collect, analyze, and act on telemetry from Azure VMs and other Azure resources. See Azure Monitor documentation.
• Azure Active Directory: For identity and access management, enabling single sign-on and granular permissions for VM access. Refer to Azure AD documentation.
• Azure Backup: Configure automated backups for Azure VMs to protect data and enable disaster recovery. Details on Azure Backup.
• Azure DevOps: Integrate VMs into CI/CD pipelines for automated deployment and testing. Explore Azure DevOps deployment groups for VMs.

Alternatives

• Amazon EC2: Amazon Web Services' primary compute offering, providing a broad selection of instance types and global reach.
• Google Compute Engine: Google Cloud's IaaS offering, known for its per-second billing and custom machine types.
• DigitalOcean Droplets: A developer-friendly cloud provider offering simple, SSD-based virtual machines often favored for smaller projects and web applications.
• Linode Compute Instances: Offers virtual servers with predictable pricing and a focus on developer experience.
• Hetzner Cloud Servers: Provides cost-effective cloud servers with a focus on powerful hardware and European data centers.

Getting started

To create a new Azure Virtual Machine using the Azure CLI, you can follow these steps. This example creates an Ubuntu Linux VM.

# Log in to Azure
az login

# Create a resource group (if you don't have one)
az group create --name myResourceGroup --location eastus

# Create a new Ubuntu VM
az vm create \
  --resource-group myResourceGroup \
  --name myVM \
  --image UbuntuLTS \
  --admin-username azureuser \
  --generate-ssh-keys

# Open port 80 for web traffic (optional, if running a web server)
az vm open-port --resource-group myResourceGroup --name myVM --port 80

# Get the public IP address of the VM
az vm show --resource-group myResourceGroup --name myVM --show-details --query publicIps --output tsv

# SSH into the VM (replace <publicIpAddress> with the actual IP)
# ssh azureuser@<publicIpAddress>

This sequence first logs into Azure, then creates a resource group to organize resources. It then provisions an Ubuntu Long Term Support (LTS) virtual machine, sets up an administrator username, and generates SSH keys for secure access. Optionally, it opens port 80 for web traffic. Finally, it retrieves the public IP address, which can be used to connect to the VM via SSH. For more detailed instructions and options, refer to the Azure CLI quickstart for Linux VMs.