VM - {AzureComputeVm} - uses unmanaged Blob based VHD. Managed disks in contrast to unmanaged disks have default features. The features include: 1. Default Disk Encryption 2. Resilience as Microsoft will managed the disk storage and move around if underlying hardware goes faulty 3. Reduction of costs over storage accounts. It is recommended to move VHD's to managed disks both from a security and cost management perspective.