How to Create a Windows Virtual Machine on Microsoft Azure
Microsoft Azure virtual machines allow businesses to run Windows or Linux servers in the cloud without buying physical hardware. They are useful for test environments, development servers, remote desktop servers (Windows 365 alternative), application hosting and disaster recovery. This guide covers creating a Windows VM in Azure and connecting to it via RDP, using the Southeast Asia region for Malaysian businesses.
You need an Azure subscription before creating VMs. New Azure accounts get USD 200 in free credits for 30 days. For production use, a Pay-As-You-Go subscription is the simplest starting point. Microsoft 365 Business subscribers with Azure Active Directory can link their tenant to an Azure subscription.
Step 1: Sign Into Azure Portal
Access the Azure Portal
Go to portal.azure.com in a browser. Sign in with the Microsoft account associated with your Azure subscription (this is usually the same account used for Microsoft 365).
The Azure portal home page shows a dashboard with your recent resources, service shortcuts and cost summary.
Step 2: Create a Resource Group
Organise Resources with a Resource Group
A resource group is a logical container for related Azure resources (VMs, disks, networking, storage). Create one before creating the VM.
In the search bar at the top, type Resource groups and select it. Click + Create.
- Subscription: Select your Azure subscription
- Resource group name: Use a descriptive name (e.g. RG-Office-Servers or RG-Production)
- Region: Southeast Asia
Click Review + create > Create. The resource group is ready in seconds.
Step 3: Create the Virtual Machine
Configure Basics Tab
Search for Virtual machines in the top search bar. Click + Create > Azure virtual machine.
On the Basics tab:
- Subscription: Your Azure subscription
- Resource group: Select the resource group created above
- Virtual machine name: e.g. VM-OFFICE-01 or VM-DEV-SERVER
- Region: Southeast Asia
- Availability options: No infrastructure redundancy required (for single VM)
- Image: Select the OS. Options include Windows Server 2022 Datacenter, Windows Server 2019, Windows 11 Pro. For a business server, select Windows Server 2022 Datacenter – Gen 2
- VM architecture: x64
Select VM Size
Click See all sizes to browse available VM sizes. Common choices for Malaysian SMEs:
| Size | vCPU | RAM | Use Case | Est. Cost/mo |
|---|---|---|---|---|
| B1s | 1 | 1 GB | Test/Dev only, very light workloads | ~USD 10 |
| B2s | 2 | 4 GB | Small application server, jump box | ~USD 35 |
| B4ms | 4 | 16 GB | Small file server, Remote Desktop | ~USD 130 |
| D4s v3 | 4 | 16 GB | Production applications, SQL Server | ~USD 180 |
B-series VMs are burstable and cost-effective for workloads with variable CPU usage. D-series provides consistent performance for production workloads.
Step 4: Configure Administrator Account
Set Admin Credentials
In the Administrator account section:
- Authentication type: Password (simpler) or SSH public key (more secure for Linux)
- Username: Choose a non-default name. Avoid admin, administrator, root as these are targeted by automated attacks.
- Password: Must be at least 12 characters with uppercase, lowercase, number and symbol
Azure VMs are exposed to the internet. Automated tools attempt common username/password combinations constantly. Use a long random password and consider restricting RDP to specific IPs via Network Security Groups.
Step 5: Configure Networking
Set Up Virtual Network and Security
On the Networking tab:
- Virtual network: Create new or select existing VNet
- Subnet: default (10.0.0.0/24)
- Public IP: Create new (needed for RDP from internet – or use Azure Bastion)
- Public inbound ports: Select Allow selected ports and select RDP (3389) for initial setup. After setup, restrict this using NSG rules to only your specific IP address.
Step 6: Create and Connect
Review and Deploy
Click Review + create. Azure validates the configuration. If validation passes, click Create. Deployment takes 2 to 5 minutes. Azure will create the VM, disk, network interface, public IP and Network Security Group.
Connect via RDP
After deployment, click Go to resource to open the VM overview. Click Connect > RDP at the top. Click Download RDP File.
Open the downloaded .rdp file. A Windows Remote Desktop connection dialog will open. Click Connect. Enter the admin username and password set during creation. Accept the certificate warning. You are now connected to the Azure VM desktop.
After initial setup, go to the VM > Networking > Inbound port rules. Edit the RDP rule and change Source from Any to IP Addresses. Enter your office public IP address. This prevents automated attacks on the RDP port while still allowing your team to connect.
Need IT Help in Malaysia?
Cybergate provides Microsoft 365 and cloud Malaysia for businesses across Malaysia. Our team is available Monday to Saturday, 9am to 6pm.