While testing our storage virtualization solution for a client we found interesting situation:
It may seem like a network issue, but....
I tried different regions and the results are similar.
Is Azure somehow throttles traffic coming from Blob storage to outside of Azure?
Your proxies/VMs or whatever runs in the same datacenter, network requests does not leave the local network and the speed then depends on the infrastructure. (routers, firewalls, cables, etc ...). I'm sure they won't limit speed between their own infrastructure so services hosted on the same network works at full speed.
When you download from outside the datacenter, it depends on the outside architecture. And then your speed depends on more factors, including your internet downloading speed. Maybe they also limit uploading speed on their side but 0.5 MB would be very low.
EDIT: even between different region, you will benefit of 2 VMs connected through optic backbones. That's normal to have a high speed. They can also consider the traffic is "inside" Azure even if it's not the same datacenter and so not limit downloading speed.
Did you tried to download from a fast internet connection outside of the datacenter ? For exemple setting up a VM on digitalocean and trying a wget from this machine ?
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