Azure AppGW and IP Address Usage

I had to do some digging recently to answer a question about the Azure Application Gateway and its consumption of IP addresses from the Application Gateway subnet address space. It’s not well documented and without an understanding of it you might end up painting yourself in a corner when designing the layout of your subnets and address spaces in an Azure Virtual Network.

If you’re not familiar with it, the Azure Application Gateway is a dedicated virtual appliance which provides various HTTP/HTTP (layer 7) load balancing applications and is provided as a multi-instance, fully managed service. It also has some web application firewall (WAF) capabilities and can be configured as an internet facing gateway, internal gateway or a combination of both.


The first important point to understand is that the Azure Application Gateway must be deployed in its own subnet. The subnet created or used for application gateway cannot contain any other types of resources (VMs, load balancers, etc.) but *can* contain other application gateways. If the subnet in question doesn’t meet this criteria, it won’t appear in the Azure portal as one of the possible subnets for selection in the deployment wizard. Because of this, one might be tempted to create the smallest address space possible for the subnet (a /29 with 3 usable IPs once Azure takes the first three from the range) especially if there’s no plan to deploy Azure Application Gateways with internal addresses. That would be a big mistake and here’s why: each instance of an application gateway consumes an address from the subnet’s address pool.


When you create an application gateway, an endpoint (public VIP or internal ILB IP) is associated and used for ingress network traffic. This VIP or ILB IP is provided by Azure and works at the transport layer (TCP/UDP). The application gateway then routes the HTTP/HTTPS traffic based on its configuration to a backend pool comprised of a virtual machine, cloud service, or an internal or an external IP address.


Regardless of whether an application gateway is deployed with a Public IP, Private IP or both each instance of a gateway consumes an address from the subnet’s address pool. If the gateway is then configured with a private ILB IP, it consumes one additional IP address from the subnet’s address pool for that ILB IP. The only IP that will show up in the subnet as being consumed, though, is the ILB IP. You won’t see any of the IPs in use by the gateway instances. The only way you’ll know if you hit the limit is that your deployment (or instance increase) will fail with an error that there’s not enough address space. This is definitely not ideal and hopeful will be improved at some point.

Some examples:

2 instance GW with a Public IP Only = 2 IPs (2 + 0 = 2)

2 instance GW with a Private IP Only = 3 IPs (2 + 1 = 3)

4 instance GW with a Public & Private IP = 5 IPs (4 + 1 = 5)

So keep this in mind when designing the layout of your Azure VNET and its subnets and address spaces. Not having enough addresses in the subnet to expand the number of instances for your production Application Gateway can be a real pain and certainly will require downtime to resolve.