Azure Private Link in action

Azure networking team just introduced preview of Azure Private Link ( It promises to bring functionality previously unavailable for bridging gap in networking between PaaS and VNETs as well as between VNETs in different tenants/subscriptions.

There are 2 distinctive use cases for Private Link:

  1. Private Link for accessing Azure PaaS Services
  2. Private Link to Private Link Service connection for connectivity across tenants and subscriptions and even overlapping IP address across VNETs

Private Link for accessing Azure PaaS Services

Traditionally if you wanted to access PaaS services securely within VNET you’d need enable VNET service endpoint which will in turn enable routing of requests from within your VNET directly to your PaaS service. PaaS will see your requests coming from private IP range of your VNET as opposed public IP address before the enablement. You still go through public IP of PaaS service though as a result, just not route through edge.

Private Link solution creates endpoint with local IP address on your subnet through which you can access your PaaS service. You will in fact see Network Interface resource being created with associated IP address once your enable this resource.

It will be similar to reverse NAT from networking point of view.

Example is below where I created storage account called privatelinkMSDN which does not have integration into VNETs so by default it will deny all connections to blobs externally or internally.

Accessing blob externally will produce HTTP error as expected due to IP filtering on storage account.

Trying to resolve name externally produces external IP address of service

PS C:\Users\174181> resolve-dnsname -Type A                                                                                                                                                                                                                                                                                                                                                                     

Name                           Type   TTL   Section    NameHost                                                                                                                                                                  ----                           ----   ---   -------    --------
                                                                                                                                                     CNAME  53    Answer
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Name       :                                                                                                                                                                          QueryType  : A                                                                                                                                                                                                                  TTL        : 52                                                                                                                                                                                                                Section    : Answer                                                                                                                                                                                                             IP4Address :                                                                                                                                                                                                                                                        

Creating of Private Endpoint is not covered here since it’s well documented at Microsoft. End result is shown below. Following resources are created as result of creation of Private Endpoint:

  1. DNS zone named as with record pointing to your Private Endpoint
  2. Private Endpoint itself
  3. Network Interface resource associated with Private Endpoint
  4. Private IP address associated with Network Interface

While externally this URL resolves to external IP address, resolving the same name within VNET delegates resolution to private DNS zone and provides internet IP address of NIC card and hence provides access to image in blob as expected.

PS C:\Users\cloudadmin> resolve-dnsname -Type A                                                                                             
Name                                           Type   TTL   Section    IPAddress
----                                           ----   ---   -------    --------- A      1800  Answer

Private Link Service connection

Initial Configuration I’m working with is described below

  1. Azure Tenant 1 ( which is associated with Subscription 2. This will be hypothetical ISV customer which provides services to tenant 2 below (like VDI for example). Subscription 1 contains VNET called MSDN-VNET with address space.
  2. Azure tenant 2 ( which is associated with Subscription 2. This is customer who would like to privately connect to your services. Subscription 2 contains VNET called NTT-VNET with address space (please note it’s the same address space as VNET in Subscription 1)

There is no trust between 2 tenants (that is there no guest accounts in either directory from other directory), so essentially it’s completely separate Azure Environments.

Traditionally to connect from Azure 2 to Azure 1 you’d have to either:

  1. Expose your services via public IP address with restrictive NSG rules on it (poor security and additional cost due to ingress traffic charges)
  2. Create VNET to VNET connectivity via VPN gateway (costly, can not have overlapped IP address space, cumbersome to setup and administer)
  3. Create VNET peering between VNETS (can not have overlapped IP address space)

Solution consists of parts depicted on image below:

In Subsription 2 you create:

  • Private Link Service (PLS) which will be used as endpoint connection target for your customers
  • Network Interface resource with IP addresses which will be used for NAT (
  • Standard Load balancer with load balancing rule
  • Backend pool with IIS ( which you want to provide access to your customer

In Subscription 1 you create

  • Private Endpoint which will connect to PLS in Subscription 2
  • Network Interface with IP ( which will be used for connectivity to PLS

Client 1 living in Subscription 1 can connect to IIS resource in Subscription 2 via IP of IIS is configured to respond with information about client connecting to it. Opening web page on serves page from IIS web server identifying that HTTP connection originates from

PS C:\Users\cloudadmin> (Invoke-WebRequest

Azure lighthouse vs guest tenant management

Traditionally if you have to manage customers environment you had 2 choices:

  1. Ask customer to add your account from your tenant as guest user to their Azure Active Directory and assign specific RBAC roles afterwards on resources
  2. Customer would have to create an account for you in their tenant. You’d have to maintain 2 different username/passwords as a result and perform logon/logoff in management for each tenant

Traditional approach

For demo purposes following are initial input parameters:

  • MSDN subscription called “Customer Subscription” ( 8211cd03-4f97-4ee6-af42-38cad1387992) in “” tenant (c0de79f3-23e2-4f18-989e-d173e1d403d6).
  • I want to manage this subscription from my main tenant with account
  • Add your account ID into Role in customers subscription
  • Email will be dispatched with invitation and require me to accept via following link
  • Once invitation is accepted I can see new tenant is available for me to switch to in portal
  • Switching to tenant allows me to view managed subscription

Problems with traditional approach:

  1. Requires end user interaction to accept invitation to manage customers environment
  2. Can only invite individual team members and not groups
  3. Partner has to switch between tenants to manage their environment (can not see for example all VMs from all managed tenants) or execute single Azure Automation RunBook across all tenants
  4. Customer have to deal with user lifecycle management, that is remove user or add user anytime something happens on partner side

Lighthouse approach

New way of managing this process is outlined below.

You can onboard customer either through Azure Marketplace or ARM deployment. I will be using ARM deployment below since one have to be Azure MSP partener to publish to marketplace.

JSON files for this post located here.

You need to gather following information before onboarding a customer

  1. Tenant ID of your MSP Azure AD
  2. Principal ID of your MSP Azure AD group
  3. Role Definition ID which is set by Azure and available here

For my specific requirements values are below: role definitinon ID is Contributor which has ID of b24988ac-6180-42a0-ab88-20f7382dd24c, Group ID e361eaed-1a02-4b06-9e12-04417f6e2a46 from tenant 65e4e06f-f263-4c1f-becb-90deb8c2d9ff

      "$schema": "",
      "contentVersion": "",
      "parameters": {
            "mspName": {
                  "value": "NTTData Consulting"
            "mspOfferDescription": {
                  "value": "Managed Services"
            "managedByTenantId": {
                  "value": "65e4e06f-f263-4c1f-becb-90deb8c2d9ff"
            "authorizations": {
                  "value": [
                              "principalId": "e361eaed-1a02-4b06-9e12-04417f6e2a46",
                              "principalIdDisplayName": "Hyperscale Team",
                              "roleDefinitionId": "b24988ac-6180-42a0-ab88-20f7382dd24c"

I deploy from cloudshell since it’s already correctly logs me into correct tenant. Switch to correct subscription before running ARM deployments

PS /home/gregory> Select-AzSubscription -SubscriptionId 8211cd03-4f97-4ee6-af42-38cad1387992

Name                                     Account                                         SubscriptionName                               Environment                                    TenantId
----                                     -------                                         ----------------                               -----------                                    --------
Customer Subscription (8211cd03-4f97-4e… MSI@50342                                       Customer Subscription                          AzureCloud                                     fb172512-c74c-4f0d-bb83-3e70586312d5

PS /home/gregory> New-AzDeployment -Name "MSP" -Location 'Central US' -TemplateFile ./template.json -TemplateParameterFile ./template.parameters.json
DeploymentName          : MSP
Location                : centralus
ProvisioningState       : Succeeded
Timestamp               : 9/3/19 3:24:26 PM
Mode                    : Incremental
TemplateLink            :
Parameters              :
                          Name                   Type                       Value
                          =====================  =========================  ==========
                          mspName                String                     NTTData Consulting
                          mspOfferDescription    String                     Managed Services
                          managedByTenantId      String                     65e4e06f-f263-4c1f-becb-90deb8c2d9ff
                          authorizations         Array                      [
                              "principalId": "e361eaed-1a02-4b06-9e12-04417f6e2a46",
                              "principalIdDisplayName": "Hyperscale Team",
                              "roleDefinitionId": "b24988ac-6180-42a0-ab88-20f7382dd24c"

Outputs                 :
                          Name              Type                       Value
                          ================  =========================  ==========
                          mspName           String                     Managed by NTTData Consulting
                          authorizations    Array                      [
                              "principalId": "e361eaed-1a02-4b06-9e12-04417f6e2a46",
                              "principalIdDisplayName": "Hyperscale Team",
                              "roleDefinitionId": "b24988ac-6180-42a0-ab88-20f7382dd24c"

DeploymentDebugLogLevel :

Login to your customer environment and check that you see now “NTTData Consulting” in service providers

Now if you want to add additional access (like accessing second subscription) you can do it right from portal without need for ARM deployment. For example below I’m adding access to specific resource group in separate subscription to be managed by MSP.

In my MSP panel I can now see both access to entire subscription and access to specific resource group in another

You shall be able to see resources in portal just like if your account was part of customers tenant

For example I added tags to existing storage account and it appears as I was guest account in customers AD.