Azure IP address limitations and reserved ranges
Azure virtual networks block multicast, broadcast and several special-purpose IPv4 ranges. Each Azure subnet also reserves five addresses. Understanding these rules prevents deployment failures, undersized subnets, DNS problems and health-probe outages.
Ranges that cannot be added to a VNet
- 224.0.0.0/4 — multicast
- 255.255.255.255/32 — limited broadcast
- 127.0.0.0/8 — loopback
- 169.254.0.0/16 — link-local addresses
- 168.63.129.16/32 — Azure platform virtual IP
For private address space, use RFC 1918 ranges such as 10.0.0.0/8, 172.16.0.0/12 or 192.168.0.0/16. Azure also supports RFC 6598 shared address space. Plan ranges carefully to avoid overlap with on-premises networks and peered VNets.
Five addresses reserved in every Azure subnet
Azure reserves the first four addresses and the last address in every subnet. For 192.168.1.0/24, the reservations are:
- 192.168.1.0 — network address
- 192.168.1.1 — Azure default gateway
- 192.168.1.2 and 192.168.1.3 — Azure DNS mapping
- 192.168.1.255 — subnet broadcast address
A /29 subnet contains eight total addresses but only three usable addresses after Azure reservations. Include this overhead when planning capacity.
Special Azure infrastructure addresses
168.63.129.16
This fixed Microsoft-owned virtual IP supports Azure DNS, DHCP, platform health probes and host communication. Do not block required outbound communication to it in the guest operating-system firewall.
169.254.169.254
This link-local address hosts the Azure Instance Metadata Service inside a virtual machine. Access it directly without a proxy. Applications and agents can use it to obtain instance metadata and managed-identity tokens.
Multicast and broadcast limitations
Azure VNets do not provide traditional Layer 2 multicast or broadcast. Use unicast designs, Azure Load Balancer, message brokers or a supported specialist solution when an application depends on multicast behavior.
Address-planning best practices
- Allocate sufficiently large RFC 1918 ranges and retain unassigned space for growth.
- Avoid very small subnets unless the usable-address calculation has been verified.
- Reserve non-overlapping ranges for peering, VPN and ExpressRoute connectivity.
- Document address ownership and expected growth before connecting networks.
- Account for platform-reserved addresses when sizing every subnet.
Common problems and corrections
- VNet creation rejects a range: choose an allowed CIDR block and verify it does not overlap connected networks.
- DNS or health probes fail: check the guest firewall and required access to 168.63.129.16.
- Metadata requests fail: connect directly to 169.254.169.254 and bypass configured proxies.
- A subnet runs out of addresses: include Azure's five reservations and service-specific requirements in capacity calculations.
Verify address space with Azure CLI
az network vnet show \
--resource-group <resource-group> \
--name <virtual-network> \
--query "addressSpace.addressPrefixes"
az network vnet subnet list \
--resource-group <resource-group> \
--vnet-name <virtual-network> \
--query "[].{name:name, prefix:addressPrefix}"Frequently asked questions
Can a VNet use public address ranges?
Azure supports various address spaces, but private RFC 1918 or RFC 6598 ranges are usually safer for enterprise networks because they reduce routing ambiguity and ownership conflicts.
Why does a VM communicate with 168.63.129.16?
It is an Azure platform virtual IP used for essential infrastructure services. Only the Azure platform can originate traffic from it, and required outbound communication should remain available.
Official references
Join the discussion
0 CommentsAsk questions, add context, or share what worked.
More from Melochip Editorial
Learn what Playwright testing is, why modern QA teams use it, how testers can get started, and the major types...
7 min read · Sep 19, 2026
Learn how Kubernetes Deployments and ReplicaSets work with practical YAML, scaling, self-healing, rolling upda...
7 min read · Sep 17, 2026
Learn Kubernetes security best practices with RBAC, Secrets, ServiceAccounts, Pod securityContext, NetworkPoli...
6 min read · Sep 17, 2026Related articles
Learn what Playwright testing is, why modern QA teams use it, how testers can get started, and the major types...
7 min read · Sep 19, 2026
Learn how Kubernetes Deployments and ReplicaSets work with practical YAML, scaling, self-healing, rolling upda...
7 min read · Sep 17, 2026
Learn Kubernetes security best practices with RBAC, Secrets, ServiceAccounts, Pod securityContext, NetworkPoli...
6 min read · Sep 17, 2026
Learn Kubernetes monitoring and logs with kubectl logs, events, metrics-server, top commands, Prometheus, Graf...
5 min read · Sep 17, 2026Stay in the loop. Get new Melochip articles
Receive Melochip article updates when new articles are available. Explicit opt-in only.
No comments yet. Start the discussion.