I created a virtual network and put 2 VMs in one subnet. But they were not able to ping each other using their hostnames. I need a DNS Server implemented so that hostnames in the subnet can be resolved to IP addresses. How do I do that? Any help will be appreciated. :)
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To sum it up:
- Install and configure DNS on one of the Vnet servers: https://technet.microsoft.com/en-us/library/cc730921.aspx
- Assign an internal static IP to the VM you installed DNS on: https://azure.microsoft.com/en-us/documentation/articles/virtual-networks-reserved-private-ip/
- Configure the Vnet to use the DNS IP addresses for name resolution:https://azure.microsoft.com/en-us/documentation/articles/virtual-networks-manage-dns-in-vnet/
- Restart your VMs at least once to get the new configuration.

Noor Khaldi
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After this will I be able to ping machines like `ping machine01` using just the hostnames? – Anindit Karmakar Jun 18 '15 at 08:30
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Assuming that you do everything correctly, then the answer is yes! – Noor Khaldi Jun 18 '15 at 21:39