The domain "cloudapp.net" is used by Microsoft's Azure service. I ran a
dig cloudapp.net command and to my surprise this yielded nothing (no ANSWER section came back in the response). "cloudapp.net" is a main domain in use by Microsoft's Azure service and Azure customers leverage it by having a subdomain off it such as "yourwebsite.cloudapp.net" and using a CNAME to link their branded domain to their sire hosted on the Azure service.
How can you have a domain name "cloudapp.net" that points to nothing basically? It is not required in DNS for a second-level domain to have an IP address linked to it? What would be some reasons for configuring your domain name in such a way? Why not have "cloudapp.net" by default point to the main MS site? Just wanting to understand why this is allowed in DNS and why from a technical perspective a company would choose to do this.