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VMs networking after changing cloud service

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Hi,

I got a simple question, I'm not sure if my network setup is ok.

I got one virtual network, inside that I got two cloud services. When Vm1 and VM2 were on the same cloud service they could communicate using host name only. Now they are on separate cloud services(but the same VNET) and host name only does not work, and I have to write "ServerName.CloudServiceName.ABC.internal.cloudapp.net" for the VMs to communicate. I'm using azure provided DNS service.

1) Is that ok? I thought that since all VMs are on the same VNET host name only would be enough.

2) Since i'm using "ServerName.CloudServiceName.ABC.internal.cloudapp.net" for the VMs to communicate, does that mean that the communication between them is via the internet? or only internal in my VNET?

Thank You!


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