Azure Private Peering
Azure compute services, namely virtual machines (IaaS) and cloud services (PaaS), that are deployed within a virtual network can be connected through the private peering domain. The private peering domain is considered to be a trusted extension of your core network into Microsoft Azure. You can set up bi-directional connectivity between your core network and Azure virtual networks (VNets). This peering lets you connect to virtual machines and cloud services directly on their private IP addresses. You can connect more than one virtual network to the private peering domain.
Microsoft Peering
Connectivity to Microsoft online services (Microsoft 365 and Azure PaaS services) occurs through Microsoft peering. We enable bi-directional connectivity between your WAN and Microsoft cloud services through the Microsoft peering routing domain. You must connect to Microsoft cloud services only over public IP addresses that are owned by you or your connectivity provider and you must adhere to all the defined rules.
The recommended configuration is that private peering is connected directly to the core network, and the public and Microsoft peering links are connected to your DMZ.
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