Microsoft Azure Administrator:Exam Guide AZ-103
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Azure disk storage

The disks that are used for virtual machines are stored in Azure blob storage as page blobs. Azure stores two disks for each virtual machine: the actual operating system (VHD) of the VM, and a temporary disk that is used for short-term storage. This data is erased when the VM is turned off or rebooted.

There are two different performance tiers that Azure offers: standard disk storage and premium disk storage.