Step 1. Create Private DNS Zones

To create Azure private DNS zones that will allow Veeam Backup for Microsoft Azure to operate in your private environment, log in to the Microsoft Azure portal and create two Azure private DNS zones named privatelink.blob.core.windows.net and privatelink.queue.core.windows.net as described in Microsoft Docs. It is recommended that you create the DNS zones in the same resource group where the backup appliance resides, to simplify resource management.