Generally speaking, when you deploy an App Service on an App Service plan, these apps will be deployed in a multi-tenant environment. In other words, the VMs that will host the apps will be in a shared pool, hosting other customers' apps as well.

Azure's App Service Environment will not do this. Instead, it will provide you with an isolated environment, such as that available on the isolated service plan, which needs an App Service Environment to function in a way that takes advantage of the benefits it offers.

App Service Environment provides the following benefits:

• Isolation—you will run your own app on a single tenant, so you can make it compliant with your policy standards
• Bring your own virtual network—you can use specific virtual networks for the VMs running your App Service, giving you more control over the traffic flow
• Support for scaling app instances can reach up to 100 instances at the time of writing