diff --git a/examples/azure-vm-custom-image-new-storage-account/README.md b/examples/azure-vm-custom-image-new-storage-account/README.md
new file mode 100644
index 000000000..2733f1cb7
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+++ b/examples/azure-vm-custom-image-new-storage-account/README.md
@@ -0,0 +1,23 @@
+# Create a new VM on a new storage account from a custom image
+
+This Terraform template was based on [this](https://github.com/Azure/azure-quickstart-templates/tree/master/201-vm-custom-image-new-storage-account) Azure Quickstart Template. Changes to the ARM template that may have occurred since the creation of this example may not be reflected here.
+
+This template allows you to create a new Virtual Machine from a custom image on a new storage account deployed together with the storage account, which means the source image VHD must be transferred to the newly created storage account before that Virtual Machine is deployed. This is accomplished by the usage of a transfer virtual machine that is deployed and then uses a script via custom script extension to copy the source VHD to the destination storage account. This process is used to overcome the limitation of the custom VHD that needs to reside at the same storage account where new virtual machines based on it will be spun up, the problem arises when you are also deploying the storage account within your template, since the storage account does not exist yet, how can you add the source VHDs beforehand?
+
+Basically, it creates two VMs, one that is the transfer virtual machine and the second that is the actual virtual machine that is the goal of the deployment. Transfer VM can be removed later.
+
+The process of this template is:
+
+1. A Virtual Network is deployed
+2. Virtual NICs for both Virtual Machines
+3. Storage Account is created
+3. Transfer Virtual Machine gets deployed
+4. Transfer Virtual Machine starts the custom script extension to start the VHD copy from source to destination storage acounts
+5. The new Virtual Machine based on a custom image VHD gets deployed 
+
+## Requirements
+
+* A preexisting generalized (sysprepped) Windows image. For more information on how to create custom Windows images, please refer to [How to capture a Windows virtual machine in the Resource Manager deployment model](https://azure.microsoft.com/en-us/documentation/articles/virtual-machines-windows-capture-image/) article.
+* Source image blob full URL. e.g. https://pmcstorage01.blob.core.windows.net/images/images/Win10MasterImage-osDisk.72451a98-4c26-4375-90c5-0a940dd56bab.vhd. Note that container name always comes after  https://pmcstorage01.blob.core.windows.net, in this example it is images. The actual blob name is **images/Win10MasterImage-osDisk.72451a98-4c26-4375-90c5-0a940dd56bab.vhd**.
+
+![graph](/examples/azure-vm-custom-image-new-storage-account/graph.png)
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diff --git a/examples/azure-vm-custom-image-new-storage-account/deploy.ci.sh b/examples/azure-vm-custom-image-new-storage-account/deploy.ci.sh
new file mode 100755
index 000000000..d87f00abc
--- /dev/null
+++ b/examples/azure-vm-custom-image-new-storage-account/deploy.ci.sh
@@ -0,0 +1,59 @@
+#!/bin/bash
+
+set -o errexit -o nounset
+
+docker run --rm -it \
+  -e ARM_CLIENT_ID \
+  -e ARM_CLIENT_SECRET \
+  -e ARM_SUBSCRIPTION_ID \
+  -e ARM_TENANT_ID \
+  -v $(pwd):/data \
+  --workdir=/data \
+  --entrypoint "/bin/sh" \
+  hashicorp/terraform:light \
+  -c "/bin/terraform get; \
+      /bin/terraform validate; \
+      /bin/terraform plan -out=out.tfplan \
+        -var source_img_uri=$EXISTING_IMAGE_URI \
+        -var hostname=$KEY \
+        -var resource_group=$KEY \
+        -var existing_resource_group=$EXISTING_RESOURCE_GROUP \
+        -var admin_password=$PASSWORD \
+        -var existing_storage_acct=$EXISTING_STORAGE_ACCOUNT_NAME \
+        -var custom_image_name=$CUSTOM_IMAGE_NAME; \
+      /bin/terraform apply out.tfplan; \
+      /bin/terraform show;"
+
+# cleanup deployed azure resources via azure-cli
+docker run --rm -it \
+  azuresdk/azure-cli-python \
+  sh -c "az login --service-principal -u $ARM_CLIENT_ID -p $ARM_CLIENT_SECRET --tenant $ARM_TENANT_ID > /dev/null; \
+         az vm show -g $KEY -n myvm; \
+         az storage account show -g $KEY -n $KEY;"
+
+# cleanup deployed azure resources via terraform
+docker run --rm -it \
+  -e ARM_CLIENT_ID \
+  -e ARM_CLIENT_SECRET \
+  -e ARM_SUBSCRIPTION_ID \
+  -e ARM_TENANT_ID \
+  -v $(pwd):/data \
+  --workdir=/data \
+  --entrypoint "/bin/sh" \
+  hashicorp/terraform:light \
+  -c "/bin/terraform destroy -force \
+        -var source_img_uri=$EXISTING_IMAGE_URI \
+        -var hostname=$KEY \
+        -var resource_group=$KEY \
+        -var existing_resource_group=$EXISTING_RESOURCE_GROUP \
+        -var admin_password=$PASSWORD \
+        -var existing_storage_acct=$EXISTING_STORAGE_ACCOUNT_NAME \
+        -var custom_image_name=$CUSTOM_IMAGE_NAME \
+        -target=azurerm_virtual_machine.myvm \
+        -target=azurerm_virtual_machine.transfer \
+        -target=azurerm_network_interface.transfernic \
+        -target=azurerm_network_interface.mynic \
+        -target=azurerm_virtual_network.vnet \
+        -target=azurerm_public_ip.mypip \
+        -target=azurerm_public_ip.transferpip \
+        -target=azurerm_storage_account.stor;"
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diff --git a/examples/azure-vm-custom-image-new-storage-account/deploy.mac.sh b/examples/azure-vm-custom-image-new-storage-account/deploy.mac.sh
new file mode 100755
index 000000000..3520afac6
--- /dev/null
+++ b/examples/azure-vm-custom-image-new-storage-account/deploy.mac.sh
@@ -0,0 +1,19 @@
+#!/bin/bash
+
+set -o errexit -o nounset
+
+if docker -v; then
+
+  # generate a unique string for CI deployment
+  export KEY=$(cat /dev/urandom | env LC_CTYPE=C tr -cd 'a-z' | head -c 12)
+  export PASSWORD=$KEY$(cat /dev/urandom | env LC_CTYPE=C tr -cd 'A-Z' | head -c 2)$(cat /dev/urandom | env LC_CTYPE=C tr -cd '0-9' | head -c 2)
+  export EXISTING_RESOURCE_GROUP=donotdelete
+  export EXISTING_IMAGE_URI=https://donotdeletedisks636.blob.core.windows.net/vhds/mywindowsimage20170510184809.vhd
+  export EXISTING_STORAGE_ACCOUNT_NAME=donotdeletedisks636
+  export CUSTOM_IMAGE_NAME=mywindowsimage20170510184809
+
+  /bin/sh ./deploy.ci.sh
+
+else
+  echo "Docker is used to run terraform commands, please install before run:  https://docs.docker.com/docker-for-mac/install/"
+fi
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diff --git a/examples/azure-vm-custom-image-new-storage-account/graph.png b/examples/azure-vm-custom-image-new-storage-account/graph.png
new file mode 100644
index 000000000..35f0c0a0e
Binary files /dev/null and b/examples/azure-vm-custom-image-new-storage-account/graph.png differ
diff --git a/examples/azure-vm-custom-image-new-storage-account/main.tf b/examples/azure-vm-custom-image-new-storage-account/main.tf
new file mode 100644
index 000000000..e59983197
--- /dev/null
+++ b/examples/azure-vm-custom-image-new-storage-account/main.tf
@@ -0,0 +1,165 @@
+# provider "azurerm" {
+#   subscription_id = "REPLACE-WITH-YOUR-SUBSCRIPTION-ID"
+#   client_id       = "REPLACE-WITH-YOUR-CLIENT-ID"
+#   client_secret   = "REPLACE-WITH-YOUR-CLIENT-SECRET"
+#   tenant_id       = "REPLACE-WITH-YOUR-TENANT-ID"
+# }
+
+resource "azurerm_resource_group" "rg" {
+  name     = "${var.resource_group}"
+  location = "${var.location}"
+}
+
+resource "azurerm_virtual_network" "vnet" {
+  name                = "${var.hostname}vnet"
+  location            = "${azurerm_resource_group.rg.location}"
+  resource_group_name = "${azurerm_resource_group.rg.name}"
+  address_space       = ["${var.address_space}"]
+}
+
+resource "azurerm_subnet" "subnet" {
+  name                 = "${var.hostname}subnet"
+  virtual_network_name = "${azurerm_virtual_network.vnet.name}"
+  resource_group_name  = "${azurerm_resource_group.rg.name}"
+  address_prefix       = "${var.subnet_prefix}"
+}
+
+resource "azurerm_public_ip" "transferpip" {
+  name                         = "transferpip"
+  location                     = "${azurerm_resource_group.rg.location}"
+  resource_group_name          = "${azurerm_resource_group.rg.name}"
+  public_ip_address_allocation = "Static"
+}
+
+resource "azurerm_network_interface" "transfernic" {
+  name                = "transfernic"
+  location            = "${azurerm_resource_group.rg.location}"
+  resource_group_name = "${azurerm_resource_group.rg.name}"
+
+  ip_configuration {
+    name                          = "${azurerm_public_ip.transferpip.name}"
+    subnet_id                     = "${azurerm_subnet.subnet.id}"
+    private_ip_address_allocation = "Static"
+    public_ip_address_id          = "${azurerm_public_ip.transferpip.id}"
+    private_ip_address            = "10.0.0.5"
+  }
+}
+
+resource "azurerm_public_ip" "mypip" {
+  name                         = "mypip"
+  location                     = "${azurerm_resource_group.rg.location}"
+  resource_group_name          = "${azurerm_resource_group.rg.name}"
+  public_ip_address_allocation = "Dynamic"
+}
+
+resource "azurerm_network_interface" "mynic" {
+  name                = "mynic"
+  location            = "${azurerm_resource_group.rg.location}"
+  resource_group_name = "${azurerm_resource_group.rg.name}"
+
+  ip_configuration {
+    name                          = "${azurerm_public_ip.mypip.name}"
+    subnet_id                     = "${azurerm_subnet.subnet.id}"
+    private_ip_address_allocation = "Dynamic"
+    public_ip_address_id          = "${azurerm_public_ip.mypip.id}"
+  }
+}
+
+resource "azurerm_storage_account" "existing" {
+  name                = "${var.existing_storage_acct}"
+  resource_group_name = "${var.existing_resource_group}"
+  location            = "${azurerm_resource_group.rg.location}"
+  account_type        = "${var.existing_storage_acct_type}"
+
+  lifecycle = {
+    prevent_destroy = true
+  }
+}
+
+resource "azurerm_storage_account" "stor" {
+  name                = "${var.hostname}"
+  resource_group_name = "${azurerm_resource_group.rg.name}"
+  location            = "${azurerm_resource_group.rg.location}"
+  account_type        = "${var.storage_account_type}"
+}
+
+resource "azurerm_virtual_machine" "transfer" {
+  name                  = "${var.transfer_vm_name}"
+  location              = "${azurerm_resource_group.rg.location}"
+  resource_group_name   = "${azurerm_resource_group.rg.name}"
+  vm_size               = "${var.vm_size}"
+  network_interface_ids = ["${azurerm_network_interface.transfernic.id}"]
+
+  storage_os_disk {
+    name          = "${var.hostname}-osdisk"
+    image_uri     = "${var.source_img_uri}"
+    vhd_uri       = "https://${var.existing_storage_acct}.blob.core.windows.net/${var.existing_resource_group}-vhds/${var.hostname}osdisk.vhd"
+    os_type       = "${var.os_type}"
+    caching       = "ReadWrite"
+    create_option = "FromImage"
+  }
+
+  os_profile {
+    computer_name  = "${var.hostname}"
+    admin_username = "${var.admin_username}"
+    admin_password = "${var.admin_password}"
+  }
+}
+
+resource "azurerm_virtual_machine_extension" "script" {
+  name                 = "CustomScriptExtension"
+  location             = "${azurerm_resource_group.rg.location}"
+  resource_group_name  = "${azurerm_resource_group.rg.name}"
+  virtual_machine_name = "${azurerm_virtual_machine.transfer.name}"
+  publisher            = "Microsoft.Compute"
+  type                 = "CustomScriptExtension"
+  type_handler_version = "1.4"
+  depends_on           = ["azurerm_virtual_machine.transfer"]
+
+  settings = <<SETTINGS
+    {
+        "commandToExecute": "powershell -ExecutionPolicy Unrestricted -Command \"Invoke-WebRequest -Uri https://raw.githubusercontent.com/Azure/azure-quickstart-templates/master/201-vm-custom-image-new-storage-account/ImageTransfer.ps1 -OutFile C:/ImageTransfer.ps1\" "
+    }
+SETTINGS
+}
+
+resource "azurerm_virtual_machine_extension" "execute" {
+  name                 = "CustomScriptExtension"
+  location             = "${azurerm_resource_group.rg.location}"
+  resource_group_name  = "${azurerm_resource_group.rg.name}"
+  virtual_machine_name = "${azurerm_virtual_machine.transfer.name}"
+  publisher            = "Microsoft.Compute"
+  type                 = "CustomScriptExtension"
+  type_handler_version = "1.4"
+  depends_on           = ["azurerm_virtual_machine_extension.script"]
+
+  settings = <<SETTINGS
+    {
+        "commandToExecute": "powershell -ExecutionPolicy Unrestricted -File C:\\ImageTransfer.ps1 -SourceImage ${var.source_img_uri} -SourceSAKey ${azurerm_storage_account.existing.primary_access_key} -DestinationURI https://${azurerm_storage_account.stor.name}.blob.core.windows.net/vhds -DestinationSAKey ${azurerm_storage_account.stor.primary_access_key}\" "
+    }
+SETTINGS
+}
+
+resource "azurerm_virtual_machine" "myvm" {
+  name                  = "${var.new_vm_name}"
+  location              = "${azurerm_resource_group.rg.location}"
+  resource_group_name   = "${azurerm_resource_group.rg.name}"
+  vm_size               = "${var.vm_size}"
+  network_interface_ids = ["${azurerm_network_interface.mynic.id}"]
+  depends_on            = ["azurerm_virtual_machine_extension.execute"]
+
+  storage_os_disk {
+    name          = "${var.hostname}osdisk"
+    image_uri     = "https://${azurerm_storage_account.stor.name}.blob.core.windows.net/vhds/${var.custom_image_name}.vhd"
+    vhd_uri       = "https://${var.hostname}.blob.core.windows.net/${var.hostname}-vhds/${var.hostname}osdisk.vhd"
+    os_type       = "${var.os_type}"
+    caching       = "ReadWrite"
+    create_option = "FromImage"
+  }
+
+  os_profile {
+    computer_name  = "${var.hostname}"
+    admin_username = "${var.admin_username}"
+    admin_password = "${var.admin_password}"
+  }
+}
diff --git a/examples/azure-vm-custom-image-new-storage-account/outputs.tf b/examples/azure-vm-custom-image-new-storage-account/outputs.tf
new file mode 100644
index 000000000..00c39358d
--- /dev/null
+++ b/examples/azure-vm-custom-image-new-storage-account/outputs.tf
@@ -0,0 +1,15 @@
+output "hostname" {
+  value = "${var.hostname}"
+}
+
+output "ip_address" {
+  value = "${azurerm_public_ip.transferpip.ip_address}"
+}
+
+output "fqdn" {
+  value = "${azurerm_public_ip.transferpip.ip_address}"
+}
+
+output "id" {
+  value = "${azurerm_public_ip.transferpip.id}"
+}
diff --git a/examples/azure-vm-custom-image-new-storage-account/variables.tf b/examples/azure-vm-custom-image-new-storage-account/variables.tf
new file mode 100644
index 000000000..c0684f2c0
--- /dev/null
+++ b/examples/azure-vm-custom-image-new-storage-account/variables.tf
@@ -0,0 +1,97 @@
+variable "resource_group" {
+  description = "Name of the resource group in which to deploy your new Virtual Machines"
+}
+
+variable "location" {
+  description = "The location/region where the virtual network resides."
+  default     = "southcentralus"
+}
+
+variable "hostname" {
+  description = "This variable is used in this template to create various other names, such as vnet name, subnet name, storage account name, et. al."
+}
+
+variable "os_type" {
+  description = "Type of OS on the existing vhd. Allowed values: 'windows' or 'linux'."
+  default     = "windows"
+}
+
+variable "existing_storage_acct" {
+  description = "The name of the storage account in which your existing VHD and image reside"
+}
+
+variable "existing_storage_acct_type" {
+  description = "The type of the storage account in which your existing VHD and image reside"
+  default     = "Premium_LRS"
+}
+
+variable "existing_resource_group" {
+  description = "The name of the resource group in which your existing storage account with your existing VHD resides"
+}
+
+variable "address_space" {
+  description = "The address space that is used by the virtual network. You can supply more than one address space. Changing this forces a new resource to be created."
+  default     = "10.0.0.0/16"
+}
+
+variable "subnet_prefix" {
+  description = "The address prefix to use for the subnet."
+  default     = "10.0.0.0/24"
+}
+
+variable "storage_account_type" {
+  description = "Defines the type of storage account to be created. Valid options are Standard_LRS, Standard_ZRS, Standard_GRS, Standard_RAGRS, Premium_LRS. Changing this is sometimes valid - see the Azure documentation for more information on which types of accounts can be converted into other types."
+  default     = "Standard_LRS"
+}
+
+variable "vm_size" {
+  description = "VM size of new virtual machine that will be deployed from a custom image."
+  default     = "Standard_DS1_v2"
+}
+
+variable "image_publisher" {
+  description = "name of the publisher of the image (az vm image list)"
+  default     = "MicrosoftWindowsServer"
+}
+
+variable "image_offer" {
+  description = "the name of the offer (az vm image list)"
+  default     = "WindowsServer"
+}
+
+variable "image_sku" {
+  description = "image sku to apply (az vm image list)"
+  default     = "2012-R2-Datacenter"
+}
+
+variable "image_version" {
+  description = "version of the image to apply (az vm image list)"
+  default     = "latest"
+}
+
+variable "admin_username" {
+  description = "Name of the local administrator account, this cannot be 'Admin', 'Administrator', or 'root'."
+  default     = "vmadmin"
+}
+
+variable "admin_password" {
+  description = "Local administrator password, complex password is required, do not use any variation of the word 'password' because it will be rejected. Minimum 8 characters."
+}
+
+variable "transfer_vm_name" {
+  description = "Name of the Windows VM that will perform the copy of the VHD from a source storage account to the new storage account created in the new deployment, this is known as transfer vm. Must be 3-15 characters."
+  default     = "transfervm"
+}
+
+variable "new_vm_name" {
+  description = "Name of the new VM deployed from the custom image. Must be 3-15 characters."
+  default     = "myvm"
+}
+
+variable "custom_image_name" {
+  description = "Name of the VHD to be used as source syspreped/generalized image to deploy the VM, for example 'mybaseimage.vhd'"
+}
+
+variable "source_img_uri" {
+  description = "Full URIs for one or more custom images (VHDs) that should be copied to the deployment storage account to spin up new VMs from them. URLs must be comma separated."
+}