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Virtual Network service endpoints provide a secure way for resources in your virtual network to connect directly to Azure platform services. When you enable a service endpoint for a subnet, traffic from that subnet to the supported Azure service flows over the Microsoft Azure backbone network. This keeps the traffic off the public internet, enhancing security and providing an optimized routing path.
A key benefit is improved security. Enabling a service endpoint extends your virtual network's identity to the Azure service. This allows you to configure the service (like an Azure Storage account) to only accept traffic coming from your specific subnets, effectively removing its public internet exposure. While Azure Private Link is recommended for the most private access, service endpoints are a simpler, no-cost option to secure service access at the network level.
Service endpoints are widely available for many core Azure services. You can configure them for services including Azure Storage, Azure SQL Database, Azure Cosmos DB, Azure Key Vault, Azure Service Bus, and Azure App Service in the regions where those services are available. This makes them a versatile tool for locking down platform services across your environment.
When you enable a service endpoint for a subnet, the fundamental routing for traffic to that Azure service changes. The traffic path shifts from going over the public internet to traveling exclusively over the Azure backbone. A critical operational effect is that the source IP address seen by the Azure service changes from a public IP address to the private IP address of the virtual machine or instance inside your virtual network. This private IP sourcing is what allows you to create virtual network firewall rules on the service itself.
You configure service endpoints at the subnet level, not on individual virtual machines. Once enabled for a subnet, all resources in that subnet can use the endpoint to reach the service. It's important to understand that DNS resolution for the service still returns its public IP address; the routing change happens at the network layer. To control this traffic, you use Network Security Groups (NSGs) on the subnet. You can simplify NSG rule creation by using Service Tags, which represent the IP address groups for entire Azure services like Storage or Sql.
Service endpoints are enabled by registering specific Resource Providers for your subscription. Major supported services include Azure Storage (via Microsoft.Storage), Azure SQL Database (Microsoft.Sql), Azure Key Vault (Microsoft.KeyVault), and Azure Cosmos DB (Microsoft.AzureCosmosDB). A key benefit is optimal routing, which prevents service traffic from being forced through an on-premises network (forced tunneling), thus improving performance. However, there are limitations: for Azure SQL, the virtual network and the database must be in the same region, and service endpoints do not natively provide private connectivity from on-premises networks without additional firewall configuration.
Azure Service Endpoints and Azure Private Endpoints solve similar problems but in fundamentally different ways. A service endpoint secures access at the service level (e.g., all Azure Storage accounts). It routes traffic from your subnet over the Azure backbone but the service retains its public endpoint. A private endpoint, powered by Azure Private Link, provides connectivity at the individual resource level (e.g., one specific storage account). It creates a network interface with a private IP address inside your virtual network that maps directly to that single resource instance.
This difference in scope leads to major security implications. With service endpoints, you can restrict a service to only accept traffic from your virtual networks, but a user or application within your network could still potentially access any instance of that service that you have permissions for, posing a data exfiltration risk. Private endpoints provide built-in protection against this: the private endpoint only connects to the one mapped resource, blocking access to all other resources within the same service, which significantly mitigates data leakage risks.
A comparison matrix contrasting Azure Service Endpoints and Private Endpoints across scope, traffic path, on-premises access, data exfiltration protection, DNS requirements, and cost.
Their support for different access patterns is another key distinction. Service endpoints only provide private routing for traffic originating within Azure virtual networks. They do not support direct private access from on-premises networks. Private endpoints, however, do support private connectivity from on-premises networks when connected via VPN or ExpressRoute private peering, as the resource is available on a private IP address within your Azure virtual network.
From a management and cost perspective, service endpoints are simple to set up, have no additional cost, and are managed at the subnet level. Private endpoints incur extra charges per endpoint and for processed data, and require more management, including DNS configuration. Regarding Network Security Groups (NSGs), service endpoints rely on NSG rules (often using service tags) to allow outbound traffic to the Azure service. For private endpoints, NSGs are not required for basic connectivity to the private IP, but they can be applied for granular control within the subnet.
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Azure Service Endpoints secure access at the service level and route subnet traffic over the Azure backbone while the service retains its public endpoint, whereas Azure Private Endpoints map a private IP address within your virtual network directly to a single resource instance. Service endpoints have no additional cost and apply across a subnet, while private endpoints incur charges, require DNS configuration, and mitigate data exfiltration risks by restricting access to that specific resource.
Enabling a service endpoint redirects traffic from the subnet to the supported Azure service over the Microsoft Azure backbone network rather than the public internet. In addition, the source IP address received by the Azure service changes from a public IP address to the private IP address of the resource within the virtual network, even though DNS resolution still returns the service's public IP address.
No, service endpoints only route traffic privately when it originates from within Azure virtual networks and do not natively support direct private access from on-premises networks. Private connectivity from on-premises networks across a VPN or ExpressRoute private peering requires the use of Azure Private Endpoints.
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