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I have a collection on REST services in Azure, also I want to to be independent to each other and to have a contact with other Web services, API etc. Can I go for an app service? Or what will be the good idea? Can anyone help me with this?

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If you want to group the functionality of the service in a domain level, then you should go for the App service as because it helps you to deploy microservices in azure also, keep them in same region and also you can able to split them so that it will become easy to maintain.

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