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Azure private endpoints and Private Link: how they work

What a private endpoint puts in your subnet, how private DNS zones make names resolve to it, and when to choose it over a service endpoint.

From Ultra Transcenders AZ-104 by Tony Rough

When a PaaS resource must be reachable on a private address, service endpoints aren’t enough; you need a private endpoint.

A private endpoint (Azure Private Link) gives a PaaS resource such as a storage account a private IP in your VNet, so VM traffic to it stays on the Microsoft backbone. It is the only option that gives a private IP.

Private endpoints give access to specific PaaS resources; they don’t connect networks.

Azure Peering Service optimises routing between an ISP and Microsoft; it has nothing to do with private PaaS access.

Option Private IP in your VNet? Scope
Service endpoint No (public endpoint over the Azure backbone) Whole service type from a subnet (for example all storage accounts)
Service endpoint policy No Limits a Microsoft.Storage endpoint to listed storage accounts
Private endpoint Yes One specific PaaS resource

Clients find the private IP through DNS: the private endpoint’s A record is kept in a private DNS zone such as privatelink.blob.core.windows.net (for Blob storage), and that zone must be linked to the VNet so that the storage account’s usual name resolves to the private IP. (See Figure 12.2.)

Left: a subnet with a Microsoft.Storage service endpoint reaches the storage account's public endpoint over the Azure backbone, and the storage firewall's VNet rule admits that subnet. Right: a private endpoint gives one specific storage account a private IP in the subnet, and a private DNS zone (privatelink.blob.core.windows.net) linked to the VNet resolves the account's name to that private IP.
Figure 12.2: Service endpoint or private endpoint: where the traffic lands

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