Windows Azure (by default) assigns each VM a VIP (Virtual IP) from the Azure DHCP server that has a very long lease time and is retained even when the VM is turned off (although the VM must remain in the "Allocated" state.)
It is not possible to use your own DHCP server in an Azure network, although you can configure DHCP options via the Azure DHCP server.
On the other hand you can have your own DNS server running in your Azure network.
Creating a nework:
In order to create a new network in Azure, go to the "Networks" tab in the Azure Portal - here we have two options:
Virtual Network: Similar to Hyper-V the virtual network / vSwitch is situated within the Azure cloud.
Local Network: This is where you can configure a VPN so you can hook-up one of your local / on-premis networks to the Azure infrastucture.
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