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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 a trusted extension of your core network into Microsoft Azure

From

Cover of Exam Ref 70-533 Implementing Microsoft Azure Infrastructure Solutions

Note

This Azure Private Peering is used for your infrastructure (IaaS) cloud service. Like you VMs or virtual network.