A virtual machine (VM) is automatically assigned a private IP address from a range that you specify, based on the subnet it is deployed in. The address is retained by a VM until the VM is deleted. Azure dynamically assigns the next available private IP address from the subnet you create a VM in. Assign a static IP address if you want a specific IP address from the subnet assigned to the VM.

A VPS runs its own copy of an operating system (OS), and customers may have superuser-level access to that operating system instance, so they can install almost any software that runs on that OS. For many purposes they are functionally equivalent to a dedicated physical server, and being software-defined, are able to be much more easily created and configured. They are priced much lower than an equivalent physical server. However, as they share the underlying physical hardware with other VPSes, performance may be lower, depending on the workload of any other executing virtual machines.[1]

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