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Now, the Azure wire server is a virtual IP address 168.63.129.16.

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It's worth your memorizing that number,

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it comes up again and again and again in Azure virtual networking.

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It's an anycast virtual IP that's accessible across

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the entire Azure public cloud.

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And the wire server VIP, virtual IP, does a lot of heavy lifting for you.

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Number one,

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it's responsible for distributing the private IP addresses that you

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allocate to each subnet in your VNet to hosts.

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In other words, it does Dynamic Host Configuration Protocol.

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The wire server is the default gateway.

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This is what allows VMs in a single virtual network to go to other

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subnets or even across appearing to other virtual networks.

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Azure provided name resolution is handled by the wire server.

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This gives you single‑label name resolution within a VNet.

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Now note that Azure provided name resolution does not function across peerings.

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You would need to do something like in this diagram,

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I've created a private zone, an Azure DNS private zone,

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and then I've linked it to two VNets, and that way, all of the virtual

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machines and devices will register their hostnames and their private IP

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addresses with that Azure DNS private zone,

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and therefore, they would be able to resolve each other's FQDNs all day long.

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Lastly,

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the wire server is responsible for communicating with your

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Azure VMs and making sure that the Azure backplane can

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communicate bidirectionally with those VMs. This goes into Azure features like Resource Health.