Azure Virtual Machines

Your data
Application
Runtime
Operating system
Virtualisation
Servers and storage
Networking
Datacenter

You manageMicrosoft manages
An Azure VM is IaaS: Microsoft runs the hardware, you run the operating system and apps.

😟 THE PROBLEM

The server needed next week will take a month to buy and install.

😊 THE SOLUTION

Create an Azure virtual machine in minutes.

  • Weeks waiting for hardware✓ A VM is ready in minutes
  • Old server failing✓ Microsoft runs the physical host
  • Paying while it is idle✓ Deallocate it to stop compute charges
🛠️ Solved with: Azure Virtual Machines
Try it yourself in the Azure simulator No Azure account needed. Launch a VM and save money 🖥️ Try it ❯
Module 2: Architecture & Services ⏱ 8 min read Updated 11 Nov 2026

Quick answer

Azure Virtual Machines are IaaS computers in the cloud. You pick an operating system image and a size (CPU and memory), and Azure runs it on its hardware. A VM needs supporting resources: a disk, a network interface in a virtual network, and optionally a public IP address and a network security group. You manage the OS, software and patches.

Exam objective: 2.2.2 Describe virtual machine options, including Azure virtual machines, Azure Virtual Machine Scale Sets, availability sets, and Azure Virtual Desktop. 2.2.3 Describe the resources required for virtual machines. (Skills measured as of July 20, 2026)

Start with a question

How do you get a new server running in minutes, without buying one?

You create an Azure virtual machine: pick an operating system, pick a size, click create.

Explain it like I’m 10

The technical explanation

When you create a VM, you choose:

ChoiceExamples
Image (operating system)Ubuntu Server, Windows Server, Red Hat
SizeStandard_B1s (1 vCPU, 1 GiB) up to very large memory and GPU sizes
Region and availabilityA region, and optionally an availability zone or availability set
NetworkingVirtual network, subnet, public IP, inbound ports

Resources a VM needs

  1. 1 Virtual machine

    The compute: vCPU and memory.

  2. 2 OS disk

    A managed disk holding the operating system.

  3. 3 Network interface

    Connects the VM to a subnet.

  4. 4 Virtual network

    Your private network in Azure.

  5. 5 Public IP + NSG

    Optional: internet access and firewall rules.

What Azure creates when you create a VM

Real-world business scenario

Enterprise

An insurance company

The problem
A claims application only runs on Windows Server with a vendor agent, and its on-premises hardware is end-of-life.
What they used
Migrated to Azure VMs in two availability zones behind a load balancer, with Azure Backup.
Why that choice
VMs keep full OS control for the vendor software while removing hardware ownership.
The result
No code changes, better availability, and hardware costs eliminated.

When to use it and when not to

✓ Use it when…

  • Lift-and-shift migrations.
  • Software that needs full OS control.
  • Specialised sizes such as GPUs.

✕ Think twice when…

  • Simple web apps, where App Service is easier.
  • Short event-driven tasks, where Functions is cheaper.
Ready for more?The full lesson adds the technical explanation, when to use it, interview questions and revision notes.

Interview preparation

Say your answer out loud first, then open the model answer. Interviewers care more about your reasoning than the exact words.

Beginner What is an Azure virtual machine and when would you use one?

Model answer

It is a computer in the cloud that I control completely, including the operating system. I would use one for lift-and-shift migrations, custom or legacy software, or when I need full control of the environment.

Interviewer follows up

Which resources are created with a VM?

You

At least an OS disk, a network interface and a virtual network with a subnet. Usually also a public IP address and a network security group.

Intermediate What is the difference between stopping and deallocating a VM?

Model answer

Stopping from inside the OS powers it off but keeps the hardware allocated, so compute billing continues. Deallocating, by using Stop in the portal or az vm deallocate, releases the hardware and stops compute charges. Disks still incur storage costs either way.

Experienced developer How do you make a VM-based workload production-ready?

Model answer

Run at least two instances across availability zones or an availability set behind a load balancer, use managed disks with backup, automate builds with images and infrastructure as code, patch with Azure Update Manager, close management ports and use Azure Bastion, enable Defender for Servers, and right-size with reservations or a savings plan for steady load.

Test yourself with exercises

3 original practice questions in the AZ-900 style. Pick your answers, then check them. You will see why each option is right or wrong. Score 75% or more and this topic is marked complete.

Question 1

Question 1 of 3 · Select 2

Which TWO resources are required for an Azure virtual machine?

Question 2

Question 2 of 3

How do you stop paying for compute on an Azure VM you are not using?

Question 3

Question 3 of 3

A company must migrate a Windows app with a vendor agent quickly with no code changes. Which service?

Quick revision

Key points

  • VMs are IaaS. You manage the OS and everything on it.
  • Choose an image (OS) and a size (CPU/RAM).
  • A VM needs a disk, NIC and virtual network; often a public IP and NSG too.
  • Deallocate to stop compute charges; disks still cost money.
  • Use multiple VMs across zones or availability sets for high availability.

Important terminology

VM size
The amount of vCPU, memory and other capacity, such as Standard_B1s or Standard_D4s_v5.
Image
The template the VM starts from, such as Ubuntu Server or Windows Server.
Managed disk
Block storage attached to a VM for its OS and data.
Network interface (NIC)
Connects a VM to a virtual network subnet.
Deallocated
A stopped VM whose hardware is released, so compute billing stops.

Common mistakes

  • Assuming a VM shut down from inside the OS stops billing.
  • Opening RDP or SSH to the whole internet.

Exam tips

  • "Resources required for a VM": disk, NIC, virtual network (subnet); optional public IP and NSG.

Five quick revision questions

  1. 1.Which cloud service type is an Azure VM?Show

    IaaS.

  2. 2.Name three resources a VM needs.Show

    A disk, a network interface and a virtual network.

  3. 3.How do you stop paying for VM compute?Show

    Deallocate it (Stop in the portal or az vm deallocate).

  4. 4.What does the VM size control?Show

    The amount of vCPU, memory and related capacity.

  5. 5.Who patches the VM's operating system?Show

    You, the customer.

Official references

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Next up: VM Scale Sets and Availability Sets