I will try to answer all doubts. If something is not clear, just comment that I complement the answer, combined?
Azure is a cloud provider. In it we find two types of services that we can consume:
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IaaS - Infrastruture as a Service: Where, yes, it is a fully manageable environment for infrastructure virtualization, ie virtual machines, networks, storage, etc.
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PaaS - Platform as a Service: Where we can consume ready-made platforms. In this case there is no virtualization - at least not directly. In this case we consume ready-to-use features such as databases, search systems, and especially hosting applications.
Azure Container Service is a PaaS. When you allocate this type of service, you do not have a VM at your disposal to be configured / customized. It is already ready and configured just for your consumption.
So when we use, for example, PaaS Azure WebApps, for web application hosting, they are not necessarily uploading a VM to allocate your application. The physical server hosting application is already there, inside the datacenter, you will just host your app on it, and reserve resources - cpu, ram. And it's the same with the Azure Container Service. You ask to provision the service for you, and then it is enough to conserve you, and you are not responsible for maintaining servers.
About the advantages of using Azure Container Service, or any other PaaS in Azure:
- You are exempt from liability for maintaining the infrastructure;
- Will only be charged for the features used, nothing else;
- Already has other relevant services and aggregates such as backup, DR, redundancy, etc.
- Easy to scale, vertically and horizontally;
- The service already has numerous resource consumption metrics;
So you can rest easy, because the Azure container service is a platform, just provision and consume.