Private endpoint

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A private endpoint is a network interface with a private IP address inside a customer’s virtual network that connects privately to a managed cloud service, such as a storage account, a database or a partner API. In cloud networking, it lets workloads reach platform services without traversing the public internet and often without the service having any public exposure at all.

The concept appears under different names. Microsoft Azure uses the term Private Endpoint with Azure Private Link, AWS provides interface VPC endpoints powered by AWS PrivateLink, and Google Cloud offers Private Service Connect endpoints. The underlying idea is the same: the service appears as a local IP address in the consumer’s VPC or virtual network.

How a private endpoint connects to a service

When a private endpoint is created, the provider places an elastic network interface in a chosen subnet and assigns it an address from that subnet’s range. Traffic sent to this address travels over the provider’s backbone network to the target service, which sees the request as coming from the private link connection rather than from a public IP address.

Connectivity is one-directional by design. Clients in the consumer network can open connections to the service, but the service cannot initiate connections back into the consumer network. This property makes private endpoints useful for exposing services between separate organizations or accounts without peering entire networks.

ComponentRoleWhere it lives
Endpoint network interfaceHolds the private IP address clients useConsumer subnet
Private link servicePublishes the target behind a load balancerProvider side
Private DNS zoneResolves the service name to the private IPConsumer DNS configuration
Approval workflowLets the service owner accept or reject connectionsProvider resource settings
Security group or policyFilters which clients may reach the interfaceConsumer network
Components involved in a private endpoint connection

DNS resolution is the critical detail

Applications usually connect to a managed service by its public fully qualified domain name, not by IP address. For traffic to use the private endpoint, that same name must resolve to the private IP address inside the network. Providers solve this with private DNS zones that override public resolution for clients in linked networks.

In hybrid environments, on-premises DNS servers must forward the relevant zones to a cloud resolver, for example a DNS forwarder or an inbound resolver endpoint. Without this forwarding, on-premises clients resolve the public address and either bypass the endpoint or fail when public access is disabled. Misconfigured DNS is the most frequent cause of private endpoint failures.

Several mechanisms restrict how resources in a VPC reach cloud services. They differ in where traffic goes, which IP address the service sees and how granular access can be.

MechanismHow it worksReachable from on-premisesGranularity
Private endpointPrivate IP in the consumer subnetYes, through VPN or dedicated linkOne specific service instance
Gateway endpointRoute table entry to a regional serviceNoWhole service, filtered by policy
Service endpointOptimized route from a subnet, public IP retainedNoService type, restricted by firewall rules
Cloud NATOutbound translation to public addressesNot applicableAny internet destination
VPC peeringJoins two networks at the routing levelDepends on transit designEntire address ranges
Ways to reach managed services privately

Private endpoints are the strongest of these options for data exfiltration control, because each endpoint maps to a single resource instance. A compromised workload cannot simply use the same path to copy data into a storage account owned by an attacker, which gateway or service endpoints alone do not always prevent.

Designing private endpoint deployments

In larger estates, private endpoints are usually placed in a hub-and-spoke topology: a central hub network hosts shared endpoints and DNS zones, while spoke networks route through it. This keeps the number of endpoints and DNS records manageable.

DecisionCommon choiceReason
Public access on the serviceDisabled after endpoint validationRemoves the internet attack surface
Endpoint placementDedicated subnet per regionSimplifies address planning and policies
DNS zone ownershipCentral platform teamAvoids conflicting records across teams
Multi-region servicesOne endpoint per regionKeeps traffic local and resilient
Access controlSecurity groups plus service policiesDefense in depth at network and identity layers
Design decisions for private endpoints

Costs consist of an hourly charge per endpoint plus a per-gigabyte data processing fee in most providers. For high-volume data flows such as backups or analytics exports, this processing fee can become significant and should be estimated before migration.

Limitations and common mistakes

A private endpoint secures the network path only. It does not replace authentication, authorization or encryption in transit, and the service still enforces its own identity controls.

  • Leaving public access enabled, so the service remains reachable from the internet in parallel.
  • Duplicate private DNS zones for the same service, which cause inconsistent resolution.
  • Overlapping IP ranges between networks, which block routing to the endpoint address.
  • Forgetting endpoint quotas, since providers limit endpoints per network or subscription.
  • Testing only by IP address, which hides DNS problems that appear once applications use hostnames.

Some managed features also behave differently behind a private endpoint. Portal consoles, monitoring agents or service-to-service integrations may expect public reachability, so disabling public access can break them unless each dependency is checked and routed through its own endpoint or a trusted-service exception.

In everyday language

A private endpoint gives a cloud service a private doorway inside a company’s own network. Instead of reaching a database or file storage over the public internet, servers talk to it through an internal address that only the company’s network can use.

It is like a building with a private corridor straight to the bank vault, instead of walking outside along a public street to the front entrance. The service stays reachable for the people who need it and invisible to everyone else.

Seen in the real world

A health insurance company moves its claims processing system to the cloud. Regulators and internal policy require that patient data never travels over the public internet. The team creates private endpoints for the managed database and the document storage account in a dedicated subnet of the hub network, links the private DNS zones and configures on-premises DNS forwarding.

After testing that every application resolves the service names to private addresses, they disable public network access on both services. Auditors can now verify that the data stores accept connections only from approved networks, and a later penetration test confirms that the services are unreachable from outside the corporate network.