For future reader of this thread: This feature currently work as expected with very minimal config (at least for me).
Just add a custom CNAME to the Storage Account Hostname and use it within your SFTP connection string.
accountname.username@<custom DNS Name>
note that this format assume a Home directory has been specified (refer to MS Doc)
Some additional notes
- This is not an HTTPS connection so you don't need to bother with supporting custom CERT on the Azure Storage (this is irrelevant for SFTP).
- I found that the Custom Domain configuration within the Storage Account do not seams to be mandatory. A DNS CNAME was sufficient.
- If you want to add a custom DNS Name, you would be required to do it programmatically as the Portal GUI won't show the option when SFTP is used.
- Also, make sure to use a DNS domain name that can be verified.
Particular scenarios
- Private Endpoint - If you are using private endpoint to reach the Storage Account, ensure port 22 is open on your network (within NSGs, Firewalls, NVA,...)
- Frontdoor - This is not an option you can use for SFTP traffic
Troubleshooting
- Per Microsoft documentation, make sure your DNS Provider does not proxy requests as this may cause network connection timeout (this may be a candidate to explain Nick issue above).