Technically it’s a VM, but operationally it is much more important than a normal workload VM.
Depending on the network offering, it can provide services such as:
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DHCP
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DNS
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NAT
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Routing
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Port forwarding
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Load balancing
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Firewall-related functionality
So if a Virtual Router is unhealthy, multiple customer VMs on that network can potentially be affected.
That’s why Virtual Router health should be one of the first things checked during a network incident.