Design name resolution inside a VNet

1.2 Design and Implement Name Resolution

📘Microsoft Azure Networking Solutions (AZ-700)


1. What Is Name Resolution?

Name resolution is the process of converting a resource name (like a server name) into an IP address so that systems can communicate.

In Azure:

  • Virtual machines
  • Applications
  • Services

do not communicate using names internally by default — they communicate using IP addresses.
DNS (Domain Name System) makes name-based communication possible.


2. Why Name Resolution Is Important Inside a VNet

Inside a Virtual Network (VNet), name resolution is required for:

  • VM-to-VM communication using names
  • Application tier communication (web → app → database)
  • Hybrid environments (Azure + on-premises)
  • Active Directory domain services
  • Service discovery and scalability
  • Easier management (names instead of IPs)

Without proper name resolution:

  • Applications fail to connect
  • Domain joins fail
  • Authentication and service communication break

3. Default Name Resolution in Azure VNets

Azure-Provided DNS

By default, every VNet uses Azure-provided DNS unless you change it.

Key Characteristics

FeatureAzure-Provided DNS
DNS server IPAutomatically assigned
Configuration requiredNo
Resolves VM names in same VNetYes
Resolves across VNetsNo
Custom domain namesNo
On-premises name resolutionNo

How It Works

  • Azure automatically assigns a DNS service
  • VMs get DNS settings through DHCP
  • VM names are resolved only within the same VNet
  • Uses internal Azure DNS suffix

Exam Tip

Azure-provided DNS is simple but limited. It is suitable for basic workloads only.


4. Limitations of Azure-Provided DNS (Very Important for Exam)

Azure-provided DNS cannot:

  • Resolve names across VNets
  • Resolve on-premises domain names
  • Support custom DNS zones
  • Be extended or customized
  • Work with Active Directory environments properly

Because of these limitations, custom DNS solutions are often required.


5. Custom DNS in a VNet

What Is Custom DNS?

Custom DNS means you provide your own DNS servers instead of using Azure’s default DNS.

These DNS servers can be:

  • Azure virtual machines
  • On-premises DNS servers
  • Azure Private DNS Resolver
  • Domain controllers

How Custom DNS Is Configured

Custom DNS servers are configured at:

  • VNet level (recommended)
  • Network interface level (overrides VNet)

6. DNS Configuration Scope (Exam Critical)

1. VNet-Level DNS Settings

  • Applied to all VMs in the VNet
  • Configured in VNet DNS settings
  • Requires VM restart to take effect

2. NIC-Level DNS Settings

  • Applied to individual VM
  • Overrides VNet DNS
  • Rarely recommended

Exam Rule

NIC-level DNS always overrides VNet-level DNS.


7. Using Azure VMs as DNS Servers

When Is This Used?

  • Active Directory Domain Services (AD DS)
  • Hybrid name resolution
  • Custom internal DNS zones

Architecture

  • DNS service installed on one or more VMs
  • VNet configured to use VM IP addresses as DNS servers
  • VMs resolve names through these DNS servers

High Availability Requirement

  • Always deploy at least two DNS servers
  • Place them in different availability zones or sets

Exam Tip

Single DNS VM = Single point of failure


8. Name Resolution for Active Directory in a VNet

Active Directory Requirements

Active Directory requires custom DNS.

Azure-provided DNS:

  • Cannot register domain records
  • Cannot support AD service discovery

Correct Design

  • Deploy domain controllers in Azure
  • Install DNS role on domain controllers
  • Configure VNet to use domain controller IPs as DNS servers

Exam Rule

Never use Azure-provided DNS for Active Directory.


9. Azure Private DNS Zones (Inside a VNet)

What Is Azure Private DNS?

Azure Private DNS provides DNS zones that are accessible only inside VNets.

Key Features

FeatureDescription
Private DNS zoneDNS zone not accessible from internet
Automatic registrationOptional
VNet linkingRequired
Supports A, CNAME recordsYes

Example Use Cases

  • Name resolution for private endpoints
  • Application name resolution inside VNets
  • Multi-tier applications

10. Automatic vs Manual Record Registration

Automatic Registration

  • VMs automatically register their names
  • Only one VNet can have auto-registration enabled

Manual Registration

  • Records created manually
  • Useful for services and endpoints

Exam Tip

Automatic registration works only for one VNet per DNS zone.


11. Name Resolution Across VNets

Problem

Azure-provided DNS:

  • Cannot resolve names across VNets

Solutions

  1. Azure Private DNS + VNet Peering
  2. Custom DNS servers
  3. Azure Private DNS Resolver

12. Azure Private DNS Resolver (Important for AZ-700)

What Is It?

A managed Azure service that:

  • Allows DNS queries between VNets
  • Allows DNS queries between Azure and on-premises
  • Eliminates need for DNS VMs

Components

ComponentPurpose
Inbound endpointDNS queries from outside
Outbound endpointDNS queries to external DNS
RulesetConditional forwarding

Benefits

  • Fully managed
  • High availability
  • No VM maintenance
  • Scalable

Exam Focus

Azure Private DNS Resolver is the recommended modern solution.


13. Name Resolution in Hybrid Environments

Hybrid Scenarios

  • Azure + on-premises DNS
  • Azure workloads accessing on-premises services
  • On-premises users accessing Azure services

Required Design Elements

  • VPN Gateway or ExpressRoute
  • Custom DNS or Private DNS Resolver
  • Conditional forwarding

Exam Rule

Azure-provided DNS cannot resolve on-premises names.


14. DNS and Private Endpoints (Frequently Tested)

Private Endpoints:

  • Use private IP addresses
  • Require Private DNS zones

Example Private DNS Zones

ServicePrivate DNS Zone
Azure Storageprivatelink.blob.core.windows.net
Azure SQLprivatelink.database.windows.net

Best Practice

  • Link Private DNS zone to the VNet
  • Enable auto-registration if required

15. DNS Design Best Practices (Exam Gold)

  • Use Azure-provided DNS only for simple workloads
  • Use custom DNS for Active Directory
  • Use Azure Private DNS for private endpoints
  • Use Azure Private DNS Resolver instead of DNS VMs
  • Avoid NIC-level DNS unless necessary
  • Deploy DNS with high availability
  • Centralize DNS design for hub-and-spoke networks

16. Common Exam Mistakes to Avoid

❌ Using Azure-provided DNS for AD
❌ Expecting cross-VNet name resolution by default
❌ Deploying single DNS VM
❌ Forgetting VM restart after DNS change
❌ Not linking Private DNS zones to VNets


17. Summary for AZ-700 Exam

  • Azure-provided DNS is default but limited
  • Custom DNS is required for enterprise workloads
  • Active Directory must use custom DNS
  • Azure Private DNS enables private name resolution
  • Azure Private DNS Resolver is the preferred modern solution
  • DNS scope and override rules are exam critical
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