Hi Sheethal Pai,
Itsn't necessary to have different storage accounts for every Azure Function. However, according to Microsoft's best practices for Azure Functions, the storage account should be created in the same region as the function app to reduce latency. Besides, separate storage account for each function app is good to improve performance.
To improve performance in production, use a separate storage account for each function app. This is especially true with Durable Functions and Event Hub triggered functions. https://learn.microsoft.com/en-us/azure/azure-functions/functions-best-practices?tabs=csharp#storage-account-configuration
The 500 error could be due to a variety of reasons. It might be configuration or access to the storage account. It is recommended to troubleshoot the storage-related issues and ensure that the storage account connection string is properly configured in the AzureWebJobsStorage and WEBSITE_CONTENTAZUREFILECONNECTIONSTRING application settings. (https://learn.microsoft.com/en-us/azure/azure-functions/storage-considerations?tabs=azure-cli#storage-account-connection-setting)
Note that services deployed in the same region as the storage account use private Azure IP addresses for communication to Azure storage (https://blog.brooksjc.com/2021/04/22/azure-functions-access-to-restricted-storage-accounts/). So, if you have restrictions or specific configurations on your network, it might affect the communication between your Azure function and the storage account.
References:
- Best practices for reliable Azure Functions - Configure storage correctly
- Troubleshoot error: "Azure Functions Runtime is unreachable"
Cheers, Luis
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