Q: Can I assign a reserved IP address directly to a cloud service during the cloud service creation?
A: No. When a cloud service is created using the New-AzureService command, essentially all that's being done is reserving the DNS name in the cloudapp.net zone. It isn't until a service is deployed to the cloud service that fabric resources are actually assigned, because the cloud service could be used for IaaS or PaaS and they each use IP addresses differently. The virtual IP address is assigned to the fabric, which means a cloud service on its own has no fabric element to assign the virtual IP address to. This is why the reserved IP address in Azure has to be assigned when deploying the first service to the cloud service. This differs from PaaS usage of a reserved IP address, which uses the reserved IP address at a slot level.