You can think of Azure Traffic Manager as a load balancer that works on the DNS level. To understand the concept, please take a look at the following example. By default, if there is no service such as Azure Traffic Manager, your customer uses an endpoint URL to send requests from a client application to a server application:
If you want to load-balance incoming requests, you have to introduce another element of an architecture that will take care of routing them to the proper backend (and possibly ensure that they are healthy):
The downside of such a setup is that latency can be introduced. What is more, ...