Now, the Azure wire server is a virtual IP address 168.63.129.16.
It's worth your memorizing that number,
it comes up again and again and again in Azure virtual networking.
It's an anycast virtual IP that's accessible across
the entire Azure public cloud.
And the wire server VIP, virtual IP, does a lot of heavy lifting for you.
Number one,
it's responsible for distributing the private IP addresses that you
allocate to each subnet in your VNet to hosts.
In other words, it does Dynamic Host Configuration Protocol.
The wire server is the default gateway.
This is what allows VMs in a single virtual network to go to other
subnets or even across appearing to other virtual networks.
Azure provided name resolution is handled by the wire server.
This gives you single‑label name resolution within a VNet.
Now note that Azure provided name resolution does not function across peerings.
You would need to do something like in this diagram,
I've created a private zone, an Azure DNS private zone,
and then I've linked it to two VNets, and that way, all of the virtual
machines and devices will register their hostnames and their private IP
addresses with that Azure DNS private zone,
and therefore, they would be able to resolve each other's FQDNs all day long.
Lastly,
the wire server is responsible for communicating with your
Azure VMs and making sure that the Azure backplane can
communicate bidirectionally with those VMs. This goes into Azure features like Resource Health.