diff --git a/builder/azure/arm/artifact.go b/builder/azure/arm/artifact.go
index 5de9f90e1..eade5017b 100644
--- a/builder/azure/arm/artifact.go
+++ b/builder/azure/arm/artifact.go
@@ -16,11 +16,25 @@ const (
 )
 
 type Artifact struct {
+	// VHD
 	StorageAccountLocation string
 	OSDiskUri              string
 	TemplateUri            string
 	OSDiskUriReadOnlySas   string
 	TemplateUriReadOnlySas string
+
+	// Managed Image
+	ManagedImageResourceGroupName string
+	ManagedImageName              string
+	ManagedImageLocation          string
+}
+
+func NewManagedImageArtifact(resourceGroup, name, location string) (*Artifact, error) {
+	return &Artifact{
+		ManagedImageResourceGroupName: resourceGroup,
+		ManagedImageName:              name,
+		ManagedImageLocation:          location,
+	}, nil
 }
 
 func NewArtifact(template *CaptureTemplate, getSasUrl func(name string) string) (*Artifact, error) {
@@ -78,6 +92,10 @@ func storageUriToTemplateUri(su *url.URL) (*url.URL, error) {
 	return url.Parse(strings.Replace(su.String(), filename, templateFilename, 1))
 }
 
+func (a *Artifact) isMangedImage() bool {
+	return a.ManagedImageResourceGroupName != ""
+}
+
 func (*Artifact) BuilderId() string {
 	return BuilderId
 }
@@ -103,11 +121,17 @@ func (a *Artifact) String() string {
 	var buf bytes.Buffer
 
 	buf.WriteString(fmt.Sprintf("%s:\n\n", a.BuilderId()))
-	buf.WriteString(fmt.Sprintf("StorageAccountLocation: %s\n", a.StorageAccountLocation))
-	buf.WriteString(fmt.Sprintf("OSDiskUri: %s\n", a.OSDiskUri))
-	buf.WriteString(fmt.Sprintf("OSDiskUriReadOnlySas: %s\n", a.OSDiskUriReadOnlySas))
-	buf.WriteString(fmt.Sprintf("TemplateUri: %s\n", a.TemplateUri))
-	buf.WriteString(fmt.Sprintf("TemplateUriReadOnlySas: %s\n", a.TemplateUriReadOnlySas))
+	if a.isMangedImage() {
+		buf.WriteString(fmt.Sprintf("ManagedImageResourceGroupName: %s\n", a.ManagedImageResourceGroupName))
+		buf.WriteString(fmt.Sprintf("ManagedImageName: %s\n", a.ManagedImageName))
+		buf.WriteString(fmt.Sprintf("ManagedImageLocation: %s\n", a.ManagedImageLocation))
+	} else {
+		buf.WriteString(fmt.Sprintf("StorageAccountLocation: %s\n", a.StorageAccountLocation))
+		buf.WriteString(fmt.Sprintf("OSDiskUri: %s\n", a.OSDiskUri))
+		buf.WriteString(fmt.Sprintf("OSDiskUriReadOnlySas: %s\n", a.OSDiskUriReadOnlySas))
+		buf.WriteString(fmt.Sprintf("TemplateUri: %s\n", a.TemplateUri))
+		buf.WriteString(fmt.Sprintf("TemplateUriReadOnlySas: %s\n", a.TemplateUriReadOnlySas))
+	}
 
 	return buf.String()
 }
diff --git a/builder/azure/arm/azure_client.go b/builder/azure/arm/azure_client.go
index 10e3d42c0..88a6990af 100644
--- a/builder/azure/arm/azure_client.go
+++ b/builder/azure/arm/azure_client.go
@@ -180,23 +180,27 @@ func NewAzureClient(subscriptionID, resourceGroupName, storageAccountName string
 	azureClient.VaultClient.ResponseInspector = byInspecting(maxlen)
 	azureClient.VaultClient.UserAgent += packerUserAgent
 
-	accountKeys, err := azureClient.AccountsClient.ListKeys(resourceGroupName, storageAccountName)
-	if err != nil {
-		return nil, err
+	// If this is a managed disk build, this should be ignored.
+	if resourceGroupName != "" && storageAccountName != "" {
+		accountKeys, err := azureClient.AccountsClient.ListKeys(resourceGroupName, storageAccountName)
+		if err != nil {
+			return nil, err
+		}
+
+		storageClient, err := storage.NewClient(
+			storageAccountName,
+			*(*accountKeys.Keys)[0].Value,
+			cloud.StorageEndpointSuffix,
+			storage.DefaultAPIVersion,
+			true /*useHttps*/)
+
+		if err != nil {
+			return nil, err
+		}
+
+		azureClient.BlobStorageClient = storageClient.GetBlobService()
 	}
 
-	storageClient, err := storage.NewClient(
-		storageAccountName,
-		*(*accountKeys.Keys)[0].Value,
-		cloud.StorageEndpointSuffix,
-		storage.DefaultAPIVersion,
-		true /*useHttps*/)
-
-	if err != nil {
-		return nil, err
-	}
-
-	azureClient.BlobStorageClient = storageClient.GetBlobService()
 	return azureClient, nil
 }
 
diff --git a/builder/azure/arm/builder.go b/builder/azure/arm/builder.go
index ef92f4cbc..a9a435a22 100644
--- a/builder/azure/arm/builder.go
+++ b/builder/azure/arm/builder.go
@@ -104,14 +104,16 @@ func (b *Builder) Run(ui packer.Ui, hook packer.Hook, cache packer.Cache) (packe
 		}
 	}
 
-	account, err := b.getBlobAccount(azureClient, b.config.ResourceGroupName, b.config.StorageAccount)
-	if err != nil {
-		return nil, err
-	}
-	b.config.storageAccountBlobEndpoint = *account.AccountProperties.PrimaryEndpoints.Blob
+	if b.config.StorageAccount != "" {
+		account, err := b.getBlobAccount(azureClient, b.config.ResourceGroupName, b.config.StorageAccount)
+		if err != nil {
+			return nil, err
+		}
+		b.config.storageAccountBlobEndpoint = *account.AccountProperties.PrimaryEndpoints.Blob
 
-	if !b.config.isManagedImage() && equalLocation(*account.Location, b.config.Location) == false {
-		return nil, fmt.Errorf("The storage account is located in %s, but the build will take place in %s.  The locations must be identical", *account.Location, b.config.Location)
+		if !equalLocation(*account.Location, b.config.Location) {
+			return nil, fmt.Errorf("The storage account is located in %s, but the build will take place in %s. The locations must be identical", *account.Location, b.config.Location)
+		}
 	}
 
 	endpointConnectType := PublicEndpoint
@@ -197,7 +199,9 @@ func (b *Builder) Run(ui packer.Ui, hook packer.Hook, cache packer.Cache) (packe
 		return nil, errors.New("Build was halted.")
 	}
 
-	if template, ok := b.stateBag.GetOk(constants.ArmCaptureTemplate); ok {
+	if b.config.isManagedImage() {
+		return NewManagedImageArtifact(b.config.ManagedImageResourceGroupName, b.config.ManagedImageName, b.config.manageImageLocation)
+	} else if template, ok := b.stateBag.GetOk(constants.ArmCaptureTemplate); ok {
 		return NewArtifact(
 			template.(*CaptureTemplate),
 			func(name string) string {
diff --git a/builder/azure/arm/config.go b/builder/azure/arm/config.go
index 0f42f6511..ee3d124f1 100644
--- a/builder/azure/arm/config.go
+++ b/builder/azure/arm/config.go
@@ -470,39 +470,61 @@ func assertRequiredParametersSet(c *Config, errs *packer.MultiError) {
 
 	/////////////////////////////////////////////
 	// Capture
-	if c.CaptureContainerName == "" {
-		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_container_name must be specified"))
+	if c.CaptureContainerName == "" && c.ManagedImageName == "" {
+		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_container_name or managed_image_name must be specified"))
 	}
 
-	if !reCaptureContainerName.MatchString(c.CaptureContainerName) {
-		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_container_name must satisfy the regular expression %q.", reCaptureContainerName.String()))
+	if c.CaptureNamePrefix == "" && c.ManagedImageResourceGroupName == "" {
+		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_name_prefix or managed_image_resource_group_name must be specified"))
 	}
 
-	if strings.HasSuffix(c.CaptureContainerName, "-") {
-		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_container_name must not end with a hyphen, e.g. '-'."))
+	if (c.CaptureNamePrefix != "" || c.CaptureContainerName != "") && (c.ManagedImageResourceGroupName != "" || c.ManagedImageName != "") {
+		errs = packer.MultiErrorAppend(errs, fmt.Errorf("Either a VHD or a managed image can be built, but not both. Please specify either capture_container_name and capture_name_prefix or managed_image_resource_group_name and managed_image_name."))
 	}
 
-	if strings.Contains(c.CaptureContainerName, "--") {
-		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_container_name must not contain consecutive hyphens, e.g. '--'."))
-	}
+	if c.CaptureContainerName != "" {
+		if !reCaptureContainerName.MatchString(c.CaptureContainerName) {
+			errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_container_name must satisfy the regular expression %q.", reCaptureContainerName.String()))
+		}
 
-	if c.CaptureNamePrefix == "" {
-		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_name_prefix must be specified"))
-	}
+		if strings.HasSuffix(c.CaptureContainerName, "-") {
+			errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_container_name must not end with a hyphen, e.g. '-'."))
+		}
 
-	if !reCaptureNamePrefix.MatchString(c.CaptureNamePrefix) {
-		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_name_prefix must satisfy the regular expression %q.", reCaptureNamePrefix.String()))
-	}
+		if strings.Contains(c.CaptureContainerName, "--") {
+			errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_container_name must not contain consecutive hyphens, e.g. '--'."))
+		}
 
-	if strings.HasSuffix(c.CaptureNamePrefix, "-") || strings.HasSuffix(c.CaptureNamePrefix, ".") {
-		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_name_prefix must not end with a hyphen or period."))
+		if c.CaptureNamePrefix == "" {
+			errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_name_prefix must be specified"))
+		}
+
+		if !reCaptureNamePrefix.MatchString(c.CaptureNamePrefix) {
+			errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_name_prefix must satisfy the regular expression %q.", reCaptureNamePrefix.String()))
+		}
+
+		if strings.HasSuffix(c.CaptureNamePrefix, "-") || strings.HasSuffix(c.CaptureNamePrefix, ".") {
+			errs = packer.MultiErrorAppend(errs, fmt.Errorf("A capture_name_prefix must not end with a hyphen or period."))
+		}
 	}
 
 	/////////////////////////////////////////////
 	// Compute
-	if c.ImageUrl != "" &&
-		(c.CustomManagedImageName != "" || c.CustomManagedImageResourceGroupName != "") &&
-		(c.ImagePublisher != "" || c.ImageOffer != "" || c.ImageSku != "") {
+	toInt := func(b bool) int {
+		if b {
+			return 1
+		} else {
+			return 0
+		}
+	}
+
+	isImageUrl := c.ImageUrl != ""
+	isCustomManagedImage := c.CustomManagedImageName != "" || c.CustomManagedImageResourceGroupName != ""
+	isPlatformImage := c.ImagePublisher != "" || c.ImageOffer != "" || c.ImageSku != ""
+
+	countSourceInputs := toInt(isImageUrl) + toInt(isCustomManagedImage) + toInt(isPlatformImage)
+
+	if countSourceInputs > 1 {
 		errs = packer.MultiErrorAppend(errs, fmt.Errorf("Specify either a VHD (image_url), Image Reference (image_publisher, image_offer, image_sku) or a Managed Disk (custom_managed_disk_image_name, custom_managed_disk_resource_group_name"))
 	}
 
@@ -541,12 +563,23 @@ func assertRequiredParametersSet(c *Config, errs *packer.MultiError) {
 
 	/////////////////////////////////////////////
 	// Deployment
-	if c.StorageAccount == "" {
-		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A storage_account must be specified"))
+	xor := func(a, b bool) bool {
+		return (a || b) && !(a && b)
 	}
-	if c.ResourceGroupName == "" {
-		errs = packer.MultiErrorAppend(errs, fmt.Errorf("A resource_group_name must be specified"))
+
+	if !xor((c.StorageAccount != "" || c.ResourceGroupName != ""), (c.ManagedImageName != "" || c.ManagedImageResourceGroupName != "")) {
+		errs = packer.MultiErrorAppend(errs, fmt.Errorf("Specify either a VHD (storage_account and resource_group_name) or Managed Image (managed_image_resource_group_name and managed_image_name) output"))
 	}
+
+	if c.ManagedImageName == "" && c.ManagedImageResourceGroupName == "" {
+		if c.StorageAccount == "" {
+			errs = packer.MultiErrorAppend(errs, fmt.Errorf("A storage_account must be specified"))
+		}
+		if c.ResourceGroupName == "" {
+			errs = packer.MultiErrorAppend(errs, fmt.Errorf("A resource_group_name must be specified"))
+		}
+	}
+
 	if c.VirtualNetworkName == "" && c.VirtualNetworkResourceGroupName != "" {
 		errs = packer.MultiErrorAppend(errs, fmt.Errorf("If virtual_network_resource_group_name is specified, so must virtual_network_name"))
 	}
diff --git a/builder/azure/arm/config_test.go b/builder/azure/arm/config_test.go
index 1d859d014..835454718 100644
--- a/builder/azure/arm/config_test.go
+++ b/builder/azure/arm/config_test.go
@@ -737,6 +737,95 @@ func TestConfigShouldRejectMissingCustomDataFile(t *testing.T) {
 	}
 }
 
+func TestConfigShouldAcceptPlatformManagedImageBuild(t *testing.T) {
+	config := map[string]interface{}{
+		"image_offer":                       "ignore",
+		"image_publisher":                   "ignore",
+		"image_sku":                         "ignore",
+		"location":                          "ignore",
+		"subscription_id":                   "ignore",
+		"communicator":                      "none",
+		"managed_image_resource_group_name": "ignore",
+		"managed_image_name":                "ignore",
+
+		// Does not matter for this test case, just pick one.
+		"os_type": constants.Target_Linux,
+	}
+
+	_, _, err := newConfig(config, getPackerConfiguration())
+	if err != nil {
+		t.Fatal("expected config to accept platform managed image build")
+	}
+}
+
+// If the user specified a build for a VHD and a Managed Image it should be rejected.
+func TestConfigShouldRejectVhdAndManagedImageOutput(t *testing.T) {
+	config := map[string]interface{}{
+		"image_offer":                       "ignore",
+		"image_publisher":                   "ignore",
+		"image_sku":                         "ignore",
+		"location":                          "ignore",
+		"subscription_id":                   "ignore",
+		"communicator":                      "none",
+		"capture_container_name":            "ignore",
+		"capture_name_prefix":               "ignore",
+		"managed_image_resource_group_name": "ignore",
+		"managed_image_name":                "ignore",
+
+		// Does not matter for this test case, just pick one.
+		"os_type": constants.Target_Linux,
+	}
+
+	_, _, err := newConfig(config, getPackerConfiguration())
+	if err == nil {
+		t.Fatal("expected config to reject VHD and Managed Image build")
+	}
+}
+
+func TestConfigShouldRejectCustomAndPlatformManagedImageBuild(t *testing.T) {
+	config := map[string]interface{}{
+		"custom_managed_image_resource_group_name": "ignore",
+		"custom_managed_image_name":                "ignore",
+		"image_offer":                              "ignore",
+		"image_publisher":                          "ignore",
+		"image_sku":                                "ignore",
+		"location":                                 "ignore",
+		"subscription_id":                          "ignore",
+		"communicator":                             "none",
+		"managed_image_resource_group_name":        "ignore",
+		"managed_image_name":                       "ignore",
+
+		// Does not matter for this test case, just pick one.
+		"os_type": constants.Target_Linux,
+	}
+
+	_, _, err := newConfig(config, getPackerConfiguration())
+	if err == nil {
+		t.Fatal("expected config to reject custom and platform input for a managed image build")
+	}
+}
+
+func TestConfigShouldRejectCustomAndImageUrlForManagedImageBuild(t *testing.T) {
+	config := map[string]interface{}{
+		"image_url":                                "ignore",
+		"custom_managed_image_resource_group_name": "ignore",
+		"custom_managed_image_name":                "ignore",
+		"location":                                 "ignore",
+		"subscription_id":                          "ignore",
+		"communicator":                             "none",
+		"managed_image_resource_group_name":        "ignore",
+		"managed_image_name":                       "ignore",
+
+		// Does not matter for this test case, just pick one.
+		"os_type": constants.Target_Linux,
+	}
+
+	_, _, err := newConfig(config, getPackerConfiguration())
+	if err == nil {
+		t.Fatal("expected config to reject custom and platform input for a managed image build")
+	}
+}
+
 func getArmBuilderConfiguration() map[string]string {
 	m := make(map[string]string)
 	for _, v := range requiredConfigValues {
diff --git a/builder/azure/arm/template_factory_test.go b/builder/azure/arm/template_factory_test.go
index 0301b1012..8a6e0c650 100644
--- a/builder/azure/arm/template_factory_test.go
+++ b/builder/azure/arm/template_factory_test.go
@@ -261,11 +261,7 @@ growpart:
 // Ensure the VM template is correct when building from a custom managed image.
 func TestVirtualMachineDeployment08(t *testing.T) {
 	config := map[string]interface{}{
-		"capture_name_prefix":                      "ignore",
-		"capture_container_name":                   "ignore",
 		"location":                                 "ignore",
-		"resource_group_name":                      "ignore",
-		"storage_account":                          "ignore",
 		"subscription_id":                          "ignore",
 		"os_type":                                  constants.Target_Linux,
 		"communicator":                             "none",
@@ -294,11 +290,7 @@ func TestVirtualMachineDeployment08(t *testing.T) {
 // Ensure the VM template is correct when building from a platform managed image.
 func TestVirtualMachineDeployment09(t *testing.T) {
 	config := map[string]interface{}{
-		"capture_name_prefix":               "ignore",
-		"capture_container_name":            "ignore",
 		"location":                          "ignore",
-		"resource_group_name":               "ignore",
-		"storage_account":                   "ignore",
 		"subscription_id":                   "ignore",
 		"os_type":                           constants.Target_Linux,
 		"communicator":                      "none",
diff --git a/examples/azure/centos.json b/examples/azure/centos.json
index 26538467f..1b0e7a633 100644
--- a/examples/azure/centos.json
+++ b/examples/azure/centos.json
@@ -28,12 +28,12 @@
     "os_type": "Linux",
     "image_publisher": "OpenLogic",
     "image_offer": "CentOS",
-    "image_sku": "7.2",
+    "image_sku": "7.3",
     "image_version": "latest",
     "ssh_pty": "true",
 
     "location": "South Central US",
-    "vm_size": "Standard_A2"
+    "vm_size": "Standard_DS2_v2"
   }],
   "provisioners": [{
     "execute_command": "echo '{{user `ssh_pass`}}' | {{ .Vars }} sudo -S -E sh '{{ .Path }}'",
diff --git a/examples/azure/debian.json b/examples/azure/debian.json
index 3e313a48f..112ca4993 100644
--- a/examples/azure/debian.json
+++ b/examples/azure/debian.json
@@ -30,7 +30,7 @@
     "ssh_pty": "true",
 
     "location": "South Central US",
-    "vm_size": "Standard_A2"
+    "vm_size": "Standard_DS2_v2"
   }],
   "provisioners": [{
     "execute_command": "echo '{{user `ssh_pass`}}' | {{ .Vars }} sudo -S -E sh '{{ .Path }}'",
diff --git a/examples/azure/linux_custom_image.json b/examples/azure/linux_custom_image.json
index 4f4be6ca4..efbd3bef0 100644
--- a/examples/azure/linux_custom_image.json
+++ b/examples/azure/linux_custom_image.json
@@ -28,7 +28,7 @@
       },
         
       "location": "West US",
-      "vm_size": "Standard_A2"
+      "vm_size": "Standard_DS2_v2"
     }
   ],
   "provisioners": [{
diff --git a/examples/azure/linux_custom_managed_image.json b/examples/azure/linux_custom_managed_image.json
index 62269b0ee..79dcc4d26 100644
--- a/examples/azure/linux_custom_managed_image.json
+++ b/examples/azure/linux_custom_managed_image.json
@@ -2,8 +2,6 @@
   "variables": {
     "client_id": "{{env `ARM_CLIENT_ID`}}",
     "client_secret": "{{env `ARM_CLIENT_SECRET`}}",
-    "resource_group": "{{env `ARM_RESOURCE_GROUP`}}",
-    "storage_account": "{{env `ARM_STORAGE_ACCOUNT`}}",
     "subscription_id": "{{env `ARM_SUBSCRIPTION_ID`}}"
   },
   "builders": [
@@ -12,13 +10,8 @@
         
       "client_id": "{{user `client_id`}}",
       "client_secret": "{{user `client_secret`}}",
-      "resource_group_name": "{{user `resource_group`}}",
-      "storage_account": "{{user `storage_account`}}",
       "subscription_id": "{{user `subscription_id`}}",
 
-      "capture_container_name": "images",
-      "capture_name_prefix": "packer",
-
       "os_type": "Linux",
       "custom_managed_image_resource_group_name": "MyResourceGroup",
       "custom_managed_image_name": "MyImage",
@@ -31,7 +24,7 @@
       },
         
       "location": "West US",
-      "vm_size": "Standard_A2"
+      "vm_size": "Standard_DS2_v2"
     }
   ],
   "provisioners": [{
diff --git a/examples/azure/rhel.json b/examples/azure/rhel.json
new file mode 100644
index 000000000..7c4160268
--- /dev/null
+++ b/examples/azure/rhel.json
@@ -0,0 +1,48 @@
+{
+  "variables": {
+    "client_id": "{{env `ARM_CLIENT_ID`}}",
+    "client_secret": "{{env `ARM_CLIENT_SECRET`}}",
+    "resource_group": "{{env `ARM_RESOURCE_GROUP`}}",
+    "storage_account": "{{env `ARM_STORAGE_ACCOUNT`}}",
+    "subscription_id": "{{env `ARM_SUBSCRIPTION_ID`}}",
+    "tenant_id": "{{env `ARM_TENANT_ID`}}",
+    "ssh_user": "centos",
+    "ssh_pass": null
+  },
+  "builders": [{
+    "type": "azure-arm",
+
+    "client_id": "{{user `client_id`}}",
+    "client_secret": "{{user `client_secret`}}",
+    "resource_group_name": "{{user `resource_group`}}",
+    "storage_account": "{{user `storage_account`}}",
+    "subscription_id": "{{user `subscription_id`}}",
+    "tenant_id": "{{user `tenant_id`}}",
+
+    "capture_container_name": "images",
+    "capture_name_prefix": "packer",
+
+    "ssh_username": "{{user `ssh_user`}}",
+    "ssh_password": "{{user `ssh_pass`}}",
+
+    "os_type": "Linux",
+    "image_publisher": "RedHat",
+    "image_offer": "RHEL",
+    "image_sku": "7.3",
+    "image_version": "latest",
+    "ssh_pty": "true",
+
+    "location": "South Central US",
+    "vm_size": "Standard_DS2_v2"
+  }],
+  "provisioners": [{
+    "execute_command": "echo '{{user `ssh_pass`}}' | {{ .Vars }} sudo -S -E sh '{{ .Path }}'",
+    "inline": [
+      "yum update -y",
+      "/usr/sbin/waagent -force -deprovision+user && export HISTSIZE=0 && sync"
+    ],
+    "inline_shebang": "/bin/sh -x",
+    "type": "shell",
+    "skip_clean": true
+  }]
+}
diff --git a/examples/azure/opensuse.json b/examples/azure/suse.json
similarity index 93%
rename from examples/azure/opensuse.json
rename to examples/azure/suse.json
index 2bb462191..c99b364ec 100644
--- a/examples/azure/opensuse.json
+++ b/examples/azure/suse.json
@@ -25,12 +25,12 @@
 
     "os_type": "Linux",
     "image_publisher": "SUSE",
-    "image_offer": "openSUSE",
-    "image_sku": "13.2",
+    "image_offer": "SLES",
+    "image_sku": "12-SP2",
     "ssh_pty": "true",
 
     "location": "South Central US",
-    "vm_size": "Standard_A2"
+    "vm_size": "Standard_DS2_v2"
   }],
   "provisioners": [{
     "execute_command": "echo '{{user `ssh_pass`}}' | {{ .Vars }} sudo -S -E sh '{{ .Path }}'",
diff --git a/examples/azure/ubuntu.json b/examples/azure/ubuntu.json
index e90ab8ede..a9c657d06 100644
--- a/examples/azure/ubuntu.json
+++ b/examples/azure/ubuntu.json
@@ -21,7 +21,7 @@
     "os_type": "Linux",
     "image_publisher": "Canonical",
     "image_offer": "UbuntuServer",
-    "image_sku": "16.04.0-LTS",
+    "image_sku": "16.04-LTS",
 
     "azure_tags": {
         "dept": "engineering",
@@ -29,7 +29,7 @@
     },
 
     "location": "West US",
-    "vm_size": "Standard_A2"
+    "vm_size": "Standard_DS2_v2"
   }],
   "provisioners": [{
     "execute_command": "chmod +x {{ .Path }}; {{ .Vars }} sudo -E sh '{{ .Path }}'",
diff --git a/examples/azure/ubuntu_managed_image.json b/examples/azure/ubuntu_managed_image.json
index b8e480ba4..ddb4a49c9 100644
--- a/examples/azure/ubuntu_managed_image.json
+++ b/examples/azure/ubuntu_managed_image.json
@@ -2,8 +2,6 @@
   "variables": {
     "client_id": "{{env `ARM_CLIENT_ID`}}",
     "client_secret": "{{env `ARM_CLIENT_SECRET`}}",
-    "resource_group": "{{env `ARM_RESOURCE_GROUP`}}",
-    "storage_account": "{{env `ARM_STORAGE_ACCOUNT`}}",
     "subscription_id": "{{env `ARM_SUBSCRIPTION_ID`}}"
   },
   "builders": [{
@@ -11,13 +9,8 @@
 
     "client_id": "{{user `client_id`}}",
     "client_secret": "{{user `client_secret`}}",
-    "resource_group_name": "{{user `resource_group`}}",
-    "storage_account": "{{user `storage_account`}}",
     "subscription_id": "{{user `subscription_id`}}",
 
-    "capture_container_name": "images",
-    "capture_name_prefix": "packer",
-
     "os_type": "Linux",
     "image_publisher": "Canonical",
     "image_offer": "UbuntuServer",
@@ -32,7 +25,7 @@
     },
 
     "location": "West US",
-    "vm_size": "Standard_A2"
+    "vm_size": "Standard_DS2_v2"
   }],
   "provisioners": [{
     "execute_command": "chmod +x {{ .Path }}; {{ .Vars }} sudo -E sh '{{ .Path }}'",
diff --git a/examples/azure/ubuntu_quickstart.json b/examples/azure/ubuntu_quickstart.json
index 22bc210c6..15166d131 100644
--- a/examples/azure/ubuntu_quickstart.json
+++ b/examples/azure/ubuntu_quickstart.json
@@ -20,7 +20,7 @@
     "image_sku": "16.04-LTS",
 
     "location": "West US",
-    "vm_size": "Standard_DS1_v2"
+    "vm_size": "Standard_DS2_v2"
   }],
   "provisioners": [{
     "execute_command": "chmod +x {{ .Path }}; {{ .Vars }} sudo -E sh '{{ .Path }}'",
diff --git a/examples/azure/windows.json b/examples/azure/windows.json
index b96f06559..8493f82cb 100644
--- a/examples/azure/windows.json
+++ b/examples/azure/windows.json
@@ -32,7 +32,7 @@
     "winrm_username": "packer",
 
     "location": "West US",
-    "vm_size": "Standard_A2"
+    "vm_size": "Standard_DS2_v2"
   }],
   "provisioners": [{
     "type": "powershell",
diff --git a/examples/azure/windows_custom_image.json b/examples/azure/windows_custom_image.json
index f8d95136d..b411555a7 100644
--- a/examples/azure/windows_custom_image.json
+++ b/examples/azure/windows_custom_image.json
@@ -28,7 +28,7 @@
       },
 
       "location": "West US",
-      "vm_size": "Standard_A2"
+      "vm_size": "Standard_DS2_v2"
     }
   ],
   "provisioners": [{
diff --git a/website/source/docs/builders/azure.html.md b/website/source/docs/builders/azure.html.md
index adb0a4a2b..750a2fe66 100644
--- a/website/source/docs/builders/azure.html.md
+++ b/website/source/docs/builders/azure.html.md
@@ -29,15 +29,8 @@ builder.
 
 -   `client_secret` (string) The password or secret for your service principal.
 
--   `resource_group_name` (string) Resource group under which the final artifact will be stored.
-
--   `storage_account` (string) Storage account under which the final artifact will be stored.
-
 -   `subscription_id` (string) Subscription under which the build will be performed. **The service principal specified in `client_id` must have full access to this subscription.**
-
--   `capture_container_name` (string) Destination container name. Essentially the "directory" where your VHD will be organized in Azure. The captured VHD's URL will be <https://><storage_account>.blob.core.windows.net/system/Microsoft.Compute/Images/<capture_container_name>/<capture_name_prefix>.xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx.vhd.
-
--   `capture_name_prefix` (string) VHD prefix. The final artifacts will be named `PREFIX-osDisk.UUID` and `PREFIX-vmTemplate.UUID`.
+-   `capture_container_name` (string) Destination container name. Essentially the "directory" where your VHD will be organized in Azure.  The captured VHD's URL will be https://<storage_account>.blob.core.windows.net/system/Microsoft.Compute/Images/<capture_container_name>/<capture_name_prefix>.xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx.vhd.
 
 -   `image_publisher` (string) PublisherName for your base image. See [documentation](https://azure.microsoft.com/en-us/documentation/articles/resource-groups-vm-searching/) for details.
 
@@ -54,6 +47,32 @@ builder.
 -   `location` (string) Azure datacenter in which your VM will build.
 
     CLI example `azure location list`
+    
+#### VHD or Managed Image
+
+The Azure builder can create either a VHD, or a managed image. When creating a VHD the following two options are required.
+
+-   `capture_container_name` (string) Destination container name. Essentially the "directory" where your VHD will be 
+    organized in Azure.  The captured VHD's URL will be https://<storage_account>.blob.core.windows.net/system/Microsoft.Compute/Images/<capture_container_name>/<capture_name_prefix>.xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxxxxx.vhd.
+    
+-   `capture_name_prefix` (string) VHD prefix. The final artifacts will be named `PREFIX-osDisk.UUID` and 
+    `PREFIX-vmTemplate.UUID`.
+
+-   `resource_group_name` (string) Resource group under which the final artifact will be stored.
+
+-   `storage_account` (string) Storage account under which the final artifact will be stored.
+
+When creating a managed image the following two options are required.
+
+-   `managed_image_name` (string) Specify the managed image name where the result of the Packer build will be saved. The
+     image name must not exist ahead of time, and will not be overwritten. If this value is set, the value 
+     `managed_image_resource_group_name` must also be set. See [documentation](https://docs.microsoft.com/en-us/azure/storage/storage-managed-disks-overview#images) 
+     to learn more about managed images.
+     
+-   `managed_image_resource_group_name` (string) Specify the managed image resource group name where the result of the Packer build will be 
+     saved.  The resource group must already exist. If this value is set, the value `managed_image_name` must also be 
+     set. See [documentation](https://docs.microsoft.com/en-us/azure/storage/storage-managed-disks-overview#images) to 
+     learn more about managed images.
 
 ### Optional:
 
@@ -89,16 +108,7 @@ builder.
 -   `image_url` (string) Specify a custom VHD to use. If this value is set, do not set image\_publisher, image\_offer,
     image\_sku, or image\_version.
      
--   `managed_image_name` (string) Specify the managed image name where the result of the Packer build will be saved. The
-     image name must not exist ahead of time, and will not be overwritten. If this value is set, the value 
-     `managed_image_resource_group_name` must also be set. See [documentation](https://docs.microsoft.com/en-us/azure/storage/storage-managed-disks-overview#images) 
-     to learn more about managed images.
-     
--   `managed_image_resource_group_name` (string) Specify the managed image resource group name where the result of the Packer build will be 
-     saved.  The resource group must already exist. If this value is set, the value `managed_image_name` must also be 
-     set. See [documentation](https://docs.microsoft.com/en-us/azure/storage/storage-managed-disks-overview#images) to 
-     learn more about managed images.
-      
+           
 -   `object_id` (string) Specify an OAuth Object ID to protect WinRM certificates
     created at runtime. This variable is required when creating images based on
     Windows; this variable is not used by non-Windows builds. See `Windows`