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With the NAT VM no longer being required and you can assign a public address to NIC1 I have a question on the NAT process concerning only connectivity from resources to the interent. Do you need to configure a source nat policy or do you just forward traffic to 0.0.0.0/0 via a static route to the .1 address of the subnet on NIC1 and the Azure environment will do the translation? It is my understanding you only assign the public IP address to the VM NIC and do not assign this to an interface within the Palo Alto configuration?

Thanks,

Steve

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Azure Nat Configuration