Explanation Before you upload a Windows virtual machine (VM) from on-premises to Azure, you must prepare the virtual hard disk (VHD or VHDX). Scenario: WebApp1 has a web tier that uses Microsoft Internet Information Services (IIS) and a database tier that runs Microsoft SQL Server 2016. The web tier and the database tier are deployed to virtual machines that run on Hyper-V. Reference: https://docs.microsoft.com/en-us/azure/virtual-machines/windows/prepare-for-upload-vhd-image