Azure Outage: I Built My Own Internet

Key insights

• Default Outbound Internet Access change: Microsoft removed default outbound internet access for all new Azure VNets (effective March 2026) to tighten security.
  New VNets now block implicit outbound traffic by default, forcing admins to explicitly define how subnets reach the internet.
• Why Zero Trust matters: This change enforces a Zero Trust networking model where every outbound path is intentional and audited.
  It reduces hidden attack surfaces and makes policies and monitoring the norm, not optional.
• NAT Gateway v2 features: v2 is zone‑redundant, supports up to 16 public IPs, and provides over 1 million SNAT ports per gateway with built‑in outbound diagnostics.
  It also offers scalable SNAT capacity and integrated logging for outbound auditing and troubleshooting.
• Impact on workloads: Without explicit outbound routes, services can fail silently — Windows activation, updates, Intune sync, AVD session hosts, and Windows 365 may stop working.
  Plan for NAT so these dependencies keep working after you create new VNets.
• Migration and key differences: v1 required multiple gateways per region and had stricter SNAT limits; you cannot always reuse old public IPs when moving to v2.
  Migration requires downtime planning, updating IP configurations, and validating SNAT capacity to avoid port exhaustion.
• Practical next steps for admins: Deploy NAT Gateway v2 for new VNets, allocate a Standard Public IP or IP prefix, enable diagnostics and Log Analytics, and attach NAT to AVD and Windows 365 subnets.
  Test activation, updates, and identity flows in a staging VNet and monitor SNAT usage to prevent outages.

Azure Academy published a practical walkthrough after Microsoft removed Default Outbound Internet Access for new Azure virtual networks beginning March 2026, and the video explains how to respond. The presentation, titled “Azure Turned Off the Internet So I Built My Own,” guides viewers through deploying Azure NAT Gateway v2 and the security reasoning behind the platform change. Consequently, administrators who rely on implicit outbound connectivity face a shifting operational landscape that the video aims to demystify.

Video overview and context

The video from Azure Academy opens with a clear explanation of the March 2026 change and then walks through step-by-step deployment, configuration, and testing of Azure NAT Gateway v2. Chapters include a hands-on deployment, a live demo, insights into diagnostics, and guidance for applying NAT to virtual desktop workloads like AVD and Windows 365. Thus, the content serves both as a tutorial and as an operational briefing for cloud teams who will encounter the change when creating new VNets.

Moreover, the author frames the update against recent outages and broader resilience concerns, explaining why implicit outbound access was convenient but increasingly risky. The video reminds viewers that services such as Windows activation, software updates, and device management depend on predictable outbound paths, which made the previous default behavior dangerous from a security and compliance standpoint. As a result, the change forces teams to define outbound access explicitly rather than assume it exists.

Why Microsoft removed default outbound access

Microsoft’s decision aligns with a wider shift toward Zero Trust networking, where implicit trust boundaries are minimized and every connection requires explicit authorization. The presenter argues that removing automatic outbound access reduces attack surface and improves auditability because administrators must now choose which subnets may reach the public internet. Consequently, this change supports stronger governance and clearer logging for outbound traffic flows.

However, the video also highlights tradeoffs: security gains come with added configuration and potential service interruptions if teams are unprepared. For example, new VNets without NAT can break activations, update processes, and authentication flows, which creates immediate operational risk. Therefore, teams must weigh short-term friction against long-term security posture when they adopt the new default behavior.

What Azure NAT Gateway v2 offers

The core of the tutorial explains how Azure NAT Gateway v2 restores well-defined outbound connectivity while providing modern networking features. Key capabilities demonstrated include zone-redundant architecture, support for up to 16 public IP addresses, and a large pool of SNAT ports to avoid port exhaustion for many concurrent connections. The presenter emphasizes built-in diagnostics for outbound auditing and how those logs improve visibility compared with the prior implicit model.

In practical terms, the video walks through assigning standard public IPs and IP prefixes, attaching NAT to specific subnets, and enabling log collection to a central analytics workspace. The demonstration shows how v2 simplifies certain limits that required multiple v1 gateways per region, and it highlights automatic failover behavior that improves availability. Thus, NAT Gateway v2 aims to balance scalability and manageability for modern cloud workloads.

Migration challenges and operational tradeoffs

Azure Academy carefully reviews migration pain points and planning considerations, noting that you cannot reuse some previously assigned IP addresses and that migration may require planned downtime for specific services. The presenter explains why v1 and v2 differ in architecture and why those differences dictate a deliberate migration strategy, including rollback plans and testing windows. As a result, organizations must build migration playbooks and schedule maintenance to reduce service impact.

Cost and complexity also surface as tradeoffs: zone-redundant setups, multiple public IPs, and logging to analytics workspaces can increase expenses and operational overhead. At the same time, these investments reduce risk from outages and security incidents, so teams must balance budget constraints with the need for resilience and auditability. In this light, the tutorial encourages operators to quantify outage risk and to include NAT configuration in their runbooks.

Impact on admins, VDI, and everyday operations

The video places particular emphasis on virtual desktop deployments, explaining how AVD and Windows 365 depend on reliable outbound connectivity for authentication and management. Consequently, desktop and endpoint administrators should validate NAT assignment for session hosts and management subnets before deploying new VNets. Failure to address outbound configuration in advance can cause authentication failures, update interruptions, and business disruption when services expect internet access.

Finally, Azure Academy recommends proactive testing, enabling diagnostics, and monitoring SNAT utilization to prevent surprises. The presenter concludes that while the change increases initial configuration work, it also forces better architectural decisions that align with Zero Trust principles and offer clearer operational controls. Thus, the video serves as a practical guide for teams preparing to define and defend outbound connectivity in Azure.

Keywords

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