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What are Network Security Groups in Azure?

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A network security group is a group of security rules (Access Control List of rules) that allow or prohibit incoming and outgoing network traffic for various Azure resources.  Subnets or specific NICs connected to a subnet can be linked with NSGs in such a way that the rules apply to every single VM in that particular subnet. You can define the sender and receiver address, as well as the host and protocol, for each rule.

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