Private Endpoint vs Service Endpoint in Azure: Key Differences and Usage

In Azure, a Private Endpoint creates a private IP in your virtual network to securely connect to Azure services, while a Service Endpoint extends your virtual network's identity to the service over the public network. Private Endpoints provide full private connectivity, whereas Service Endpoints improve security but still use public IPs.

Quick Comparison

This table summarizes the main differences between Azure Private Endpoint and Service Endpoint.

Feature	Private Endpoint	Service Endpoint
Network Access	Uses private IP inside your VNet	Uses public IP but restricts access to your VNet
Security	Full private connectivity, no exposure to internet	Traffic still goes over Azure backbone but uses public IP
Supported Services	Supports most Azure PaaS services and custom services	Supports many Azure PaaS services, fewer than Private Endpoint
DNS Configuration	Requires DNS changes to resolve private IP	No DNS changes needed
Cost	Charges apply for Private Endpoint resource	No extra cost for Service Endpoint
Use Case	When strict private network isolation is needed	When you want to secure service access without private IP

Key Differences

Private Endpoint assigns a private IP address from your virtual network to the Azure service, making the service appear as part of your private network. This means all traffic stays within your private network boundary, providing strong isolation and protection from the public internet.

In contrast, Service Endpoint does not assign a private IP but allows your virtual network to access Azure services over the Azure backbone network. The service still has a public IP, but access is restricted to your virtual network's IP range, improving security without changing DNS or IP addressing.

Private Endpoints require DNS configuration to resolve the service name to the private IP, while Service Endpoints work with existing public DNS. Private Endpoints also support more Azure services and custom services, but they incur additional costs. Service Endpoints are simpler and free but provide less isolation.

Private Endpoint Code Example

terraform

resource "azurerm_private_endpoint" "example" {
  name                = "example-private-endpoint"
  location            = azurerm_resource_group.example.location
  resource_group_name = azurerm_resource_group.example.name
  subnet_id           = azurerm_subnet.example.id

  private_service_connection {
    name                           = "example-privatesc"
    private_connection_resource_id = azurerm_storage_account.example.id
    is_manual_connection           = false
    subresource_names              = ["blob"]
  }
}

resource "azurerm_private_dns_zone" "example" {
  name                = "privatelink.blob.core.windows.net"
  resource_group_name = azurerm_resource_group.example.name
}

resource "azurerm_private_dns_zone_virtual_network_link" "example" {
  name                  = "example-link"
  resource_group_name   = azurerm_resource_group.example.name
  private_dns_zone_name = azurerm_private_dns_zone.example.name
  virtual_network_id    = azurerm_virtual_network.example.id
}

Output

Creates a private endpoint linked to a storage account with DNS zone for private resolution.

Service Endpoint Equivalent

terraform

resource "azurerm_subnet" "example" {
  name                 = "example-subnet"
  resource_group_name  = azurerm_resource_group.example.name
  virtual_network_name = azurerm_virtual_network.example.name
  address_prefixes     = ["10.0.1.0/24"]

  service_endpoints = ["Microsoft.Storage"]
}

Output

Enables service endpoint for Microsoft.Storage on the subnet, allowing secure access without private IP.

When to Use Which

Choose Private Endpoint when: you need full private network isolation, want to avoid any exposure to public IPs, or require private connectivity to services including custom ones. It is best for high-security environments.

Choose Service Endpoint when: you want to secure access to Azure services without changing DNS or IP addressing, prefer a simpler setup, and can accept that traffic uses public IPs but is restricted to your virtual network.

Key Takeaways

Private Endpoint provides full private IP connectivity inside your virtual network.

Service Endpoint secures service access over public IPs restricted to your VNet.

Private Endpoint requires DNS changes; Service Endpoint does not.

Use Private Endpoint for strict isolation and Service Endpoint for simpler security.

Private Endpoint may incur extra costs; Service Endpoint is free.