diff --git a/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine.py b/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine.py
index f12f3fbeb09..266033df7a8 100644
--- a/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine.py
+++ b/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine.py
@@ -2,6 +2,7 @@
 #
 # Copyright (c) 2016 Matt Davis, <mdavis@ansible.com>
 #                    Chris Houseknecht, <house@redhat.com>
+# Copyright (c) 2018 James E. King, III (@jeking3) <jking@apache.org>
 #
 # GNU General Public License v3.0+ (see COPYING or https://www.gnu.org/licenses/gpl-3.0.txt)
 
@@ -277,8 +278,8 @@ options:
     remove_on_absent:
         description:
             - "When removing a VM using state 'absent', also remove associated resources."
-            - "It can be 'all' or 'all_autocreated' or  a list with any of the following: ['network_interfaces', 'virtual_storage', 'public_ips']."
-            - "To remove all resources referred by VM use 'all'."
+            - "It can be a list with any of the following: ['all', 'all_autocreated', 'network_interfaces', 'virtual_storage', 'public_ips']."
+            - "To remove all resources referred by VM use 'all' (this includes autocreated)."
             - "To remove all resources that were automatically created while provisioning VM use 'all_autocreated'."
             - Any other input will be ignored.
         default: ['all']
@@ -352,6 +353,26 @@ options:
                 description:
                     - Specifies the certificate store on the Virtual Machine to which the certificate
                       should be added. The specified certificate store is implicitly in the LocalMachine account.
+    boot_diagnostics:
+        description:
+            - Manage boot diagnostics settings for a virtual machine.  Boot diagnostics
+              includes a serial console and remote console screenshots.
+        version_added: '2.9'
+        suboptions:
+            enabled:
+                description:
+                    - Flag indicating if boot diagnostics is enabled.
+                required: true
+                type: bool
+            storage_account:
+                description:
+                    - The name of an existing storage account to use for boot diagnostics.
+                    - If omitted and C(storage_account_name) is defined one level up, that
+                      will be used instead.
+                    - If omitted and C(storage_account_name) is not defined one level up, and
+                      C(enabled) is I(true), then a default storage account will be created
+                      or used for the virtual machine to hold the boot diagnostics data.
+                required: false
 
 extends_documentation_fragment:
     - azure
@@ -361,7 +382,7 @@ author:
     - "Chris Houseknecht (@chouseknecht)"
     - "Matt Davis (@nitzmahone)"
     - "Christopher Perrin (@cperrin88)"
-
+    - "James E. King III (@jeking3)"
 '''
 EXAMPLES = '''
 
@@ -452,6 +473,8 @@ EXAMPLES = '''
     network_interfaces: testvm001
     storage_container: osdisk
     storage_blob: osdisk.vhd
+    boot_diagnostics:
+      enabled: yes
     image:
       offer: CoreOS
       publisher: CoreOS
@@ -798,7 +821,8 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
             accept_terms=dict(type='bool', default=False),
             license_type=dict(type='str', choices=['Windows_Server', 'Windows_Client']),
             vm_identity=dict(type='str', choices=['SystemAssigned']),
-            winrm=dict(type='list')
+            winrm=dict(type='list'),
+            boot_diagnostics=dict(type='dict'),
         )
 
         self.resource_group = None
@@ -842,6 +866,7 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
         self.zones = None
         self.license_type = None
         self.vm_identity = None
+        self.boot_diagnostics = None
 
         self.results = dict(
             changed=False,
@@ -853,6 +878,45 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
         super(AzureRMVirtualMachine, self).__init__(derived_arg_spec=self.module_arg_spec,
                                                     supports_check_mode=True)
 
+    @property
+    def boot_diagnostics_present(self):
+        return self.boot_diagnostics is not None and 'enabled' in self.boot_diagnostics
+
+    def get_boot_diagnostics_storage_account(self, limited=False, vm_dict=None):
+        """
+        Get the boot diagnostics storage account.
+
+        Arguments:
+          - limited - if true, limit the logic to the boot_diagnostics storage account
+                      this is used if initial creation of the VM has a stanza with
+                      boot_diagnostics disabled, so we only create a storage account
+                      if the user specifies a storage account name inside the boot_diagnostics
+                      schema
+          - vm_dict - if invoked on an update, this is the current state of the vm including
+                      tags, like the default storage group tag '_own_sa_'.
+
+        Normal behavior:
+          - try the self.boot_diagnostics.storage_account field
+          - if not there, try the self.storage_account_name field
+          - if not there, use the default storage account
+
+        If limited is True:
+          - try the self.boot_diagnostics.storage_account field
+          - if not there, None
+        """
+        bsa = None
+        if 'storage_account' in self.boot_diagnostics:
+            bsa = self.get_storage_account(self.boot_diagnostics['storage_account'])
+        elif limited:
+            return None
+        elif self.storage_account_name:
+            bsa = self.get_storage_account(self.storage_account_name)
+        else:
+            bsa = self.create_default_storage_account(vm_dict=vm_dict)
+        self.log("boot diagnostics storage account:")
+        self.log(self.serialize_obj(bsa, 'StorageAccount'), pretty_print=True)
+        return bsa
+
     def exec_module(self, **kwargs):
 
         for key in list(self.module_arg_spec.keys()) + ['tags']:
@@ -869,6 +933,7 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
         results = dict()
         vm = None
         network_interfaces = []
+        requested_storage_uri = None
         requested_vhd_uri = None
         data_disk_requested_vhd_uri = None
         disable_ssh_password = None
@@ -943,7 +1008,8 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
             if self.storage_account_name and not self.managed_disk_type:
                 properties = self.get_storage_account(self.storage_account_name)
 
-                requested_vhd_uri = '{0}{1}/{2}'.format(properties.primary_endpoints.blob,
+                requested_storage_uri = properties.primary_endpoints.blob
+                requested_vhd_uri = '{0}{1}/{2}'.format(requested_storage_uri,
                                                         self.storage_container_name,
                                                         self.storage_blob_name)
 
@@ -1044,6 +1110,46 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
                 if self.license_type is not None and vm_dict['properties'].get('licenseType') != self.license_type:
                     differences.append('License Type')
                     changed = True
+
+                # Defaults for boot diagnostics
+                if 'diagnosticsProfile' not in vm_dict['properties']:
+                    vm_dict['properties']['diagnosticsProfile'] = {}
+                if 'bootDiagnostics' not in vm_dict['properties']['diagnosticsProfile']:
+                    vm_dict['properties']['diagnosticsProfile']['bootDiagnostics'] = {
+                        'enabled': False,
+                        'storageUri': None
+                    }
+                if self.boot_diagnostics_present:
+                    current_boot_diagnostics = vm_dict['properties']['diagnosticsProfile']['bootDiagnostics']
+                    boot_diagnostics_changed = False
+
+                    if self.boot_diagnostics['enabled'] != current_boot_diagnostics['enabled']:
+                        current_boot_diagnostics['enabled'] = self.boot_diagnostics['enabled']
+                        boot_diagnostics_changed = True
+
+                    boot_diagnostics_storage_account = self.get_boot_diagnostics_storage_account(
+                        limited=not self.boot_diagnostics['enabled'], vm_dict=vm_dict)
+                    boot_diagnostics_blob = boot_diagnostics_storage_account.primary_endpoints.blob if boot_diagnostics_storage_account else None
+                    if current_boot_diagnostics['storageUri'] != boot_diagnostics_blob:
+                        current_boot_diagnostics['storageUri'] = boot_diagnostics_blob
+                        boot_diagnostics_changed = True
+
+                    if boot_diagnostics_changed:
+                        differences.append('Boot Diagnostics')
+                        changed = True
+
+                    # Adding boot diagnostics can create a default storage account after initial creation
+                    # this means we might also need to update the _own_sa_ tag
+                    own_sa = (self.tags or {}).get('_own_sa_', None)
+                    cur_sa = vm_dict.get('tags', {}).get('_own_sa_', None)
+                    if own_sa and own_sa != cur_sa:
+                        if 'Tags' not in differences:
+                            differences.append('Tags')
+                        if 'tags' not in vm_dict:
+                            vm_dict['tags'] = {}
+                        vm_dict['tags']['_own_sa_'] = own_sa
+                        changed = True
+
                 self.differences = differences
 
             elif self.state == 'absent':
@@ -1066,7 +1172,6 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
 
         if changed:
             if self.state == 'present':
-                default_storage_account = None
                 if not vm:
                     # Create the VM
                     self.log("Create virtual machine {0}".format(self.name))
@@ -1103,14 +1208,15 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
                     # os disk
                     if not self.storage_account_name and not self.managed_disk_type:
                         storage_account = self.create_default_storage_account()
-                        self.log("storage account:")
+                        self.log("os disk storage account:")
                         self.log(self.serialize_obj(storage_account, 'StorageAccount'), pretty_print=True)
-                        requested_vhd_uri = 'https://{0}.blob.{1}/{2}/{3}'.format(
+                        requested_storage_uri = 'https://{0}.blob.{1}/'.format(
                             storage_account.name,
-                            self._cloud_environment.suffixes.storage_endpoint,
+                            self._cloud_environment.suffixes.storage_endpoint)
+                        requested_vhd_uri = '{0}{1}/{2}'.format(
+                            requested_storage_uri,
                             self.storage_container_name,
                             self.storage_blob_name)
-                        default_storage_account = storage_account  # store for use by data disks if necessary
 
                     if not self.short_hostname:
                         self.short_hostname = self.name
@@ -1135,7 +1241,9 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
                                                         publisher=self.plan.get('publisher'),
                                                         promotion_code=self.plan.get('promotion_code'))
 
-                    license_type = self.license_type
+                    # do this before creating vm_resource as it can modify tags
+                    if self.boot_diagnostics_present and self.boot_diagnostics['enabled']:
+                        boot_diag_storage_account = self.get_boot_diagnostics_storage_account()
 
                     vm_resource = self.compute_models.VirtualMachine(
                         location=self.location,
@@ -1206,6 +1314,12 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
                         elif not vm_resource.os_profile.windows_configuration.win_rm:
                             vm_resource.os_profile.windows_configuration.win_rm = winrm
 
+                    if self.boot_diagnostics_present:
+                        vm_resource.diagnostics_profile = self.compute_models.DiagnosticsProfile(
+                            boot_diagnostics=self.compute_models.BootDiagnostics(
+                                enabled=self.boot_diagnostics['enabled'],
+                                storage_uri=boot_diag_storage_account.primary_endpoints.blob))
+
                     if self.admin_password:
                         vm_resource.os_profile.admin_password = self.admin_password
 
@@ -1237,13 +1351,9 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
                                 if data_disk.get('storage_account_name'):
                                     data_disk_storage_account = self.get_storage_account(data_disk['storage_account_name'])
                                 else:
-                                    if(not default_storage_account):
-                                        data_disk_storage_account = self.create_default_storage_account()
-                                        self.log("data disk storage account:")
-                                        self.log(self.serialize_obj(data_disk_storage_account, 'StorageAccount'), pretty_print=True)
-                                        default_storage_account = data_disk_storage_account  # store for use by future data disks if necessary
-                                    else:
-                                        data_disk_storage_account = default_storage_account
+                                    data_disk_storage_account = self.create_default_storage_account()
+                                    self.log("data disk storage account:")
+                                    self.log(self.serialize_obj(data_disk_storage_account, 'StorageAccount'), pretty_print=True)
 
                                 if not data_disk.get('storage_container_name'):
                                     data_disk['storage_container_name'] = 'vhds'
@@ -1292,7 +1402,7 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
                             term = self.marketplace_client.marketplace_agreements.get(
                                 publisher_id=plan_publisher, offer_id=plan_product, plan_id=plan_name)
                             term.accepted = True
-                            agreement = self.marketplace_client.marketplace_agreements.create(
+                            self.marketplace_client.marketplace_agreements.create(
                                 publisher_id=plan_publisher, offer_id=plan_product, plan_id=plan_name, parameters=term)
                         except Exception as exc:
                             self.fail(("Error accepting terms for virtual machine {0} with plan {1}. " +
@@ -1353,9 +1463,6 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
                         )
                     else:
                         os_profile = None
-                    license_type = None
-                    if self.license_type is None:
-                        license_type = "None"
 
                     vm_resource = self.compute_models.VirtualMachine(
                         location=vm_dict['location'],
@@ -1384,6 +1491,12 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
                     if self.license_type is not None:
                         vm_resource.license_type = self.license_type
 
+                    if self.boot_diagnostics is not None:
+                        vm_resource.diagnostics_profile = self.compute_models.DiagnosticsProfile(
+                            boot_diagnostics=self.compute_models.BootDiagnostics(
+                                enabled=vm_dict['properties']['diagnosticsProfile']['bootDiagnostics']['enabled'],
+                                storage_uri=vm_dict['properties']['diagnosticsProfile']['bootDiagnostics']['storageUri']))
+
                     if vm_dict.get('tags'):
                         vm_resource.tags = vm_dict['tags']
 
@@ -1661,26 +1774,26 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
         except Exception as exc:
             self.fail("Error deleting virtual machine {0} - {1}".format(self.name, str(exc)))
 
-        if 'all_autocreated' in self.remove_on_absent:
+        if 'all' in self.remove_on_absent or 'all_autocreated' in self.remove_on_absent:
             self.remove_autocreated_resources(vm.tags)
-        else:
-            # TODO: parallelize nic, vhd, and public ip deletions with begin_deleting
-            # TODO: best-effort to keep deleting other linked resources if we encounter an error
-            if self.remove_on_absent.intersection(set(['all', 'virtual_storage'])):
-                self.log('Deleting VHDs')
-                self.delete_vm_storage(vhd_uris)
-                self.log('Deleting managed disks')
-                self.delete_managed_disks(managed_disk_ids)
 
-            if self.remove_on_absent.intersection(set(['all', 'network_interfaces'])):
-                self.log('Deleting network interfaces')
-                for nic_dict in nic_names:
-                    self.delete_nic(nic_dict['resource_group'], nic_dict['name'])
+        # TODO: parallelize nic, vhd, and public ip deletions with begin_deleting
+        # TODO: best-effort to keep deleting other linked resources if we encounter an error
+        if self.remove_on_absent.intersection(set(['all', 'virtual_storage'])):
+            self.log('Deleting VHDs')
+            self.delete_vm_storage(vhd_uris)
+            self.log('Deleting managed disks')
+            self.delete_managed_disks(managed_disk_ids)
+
+        if self.remove_on_absent.intersection(set(['all', 'network_interfaces'])):
+            self.log('Deleting network interfaces')
+            for nic_dict in nic_names:
+                self.delete_nic(nic_dict['resource_group'], nic_dict['name'])
 
-            if self.remove_on_absent.intersection(set(['all', 'public_ips'])):
-                self.log('Deleting public IPs')
-                for pip_dict in pip_names:
-                    self.delete_pip(pip_dict['resource_group'], pip_dict['name'])
+        if self.remove_on_absent.intersection(set(['all', 'public_ips'])):
+            self.log('Deleting public IPs')
+            for pip_dict in pip_names:
+                self.delete_pip(pip_dict['resource_group'], pip_dict['name'])
 
         return True
 
@@ -1841,10 +1954,15 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
                 return True
         return False
 
-    def create_default_storage_account(self):
+    def create_default_storage_account(self, vm_dict=None):
         '''
-        Create a default storage account <vm name>XXXX, where XXXX is a random number. If <vm name>XXXX exists, use it.
-        Otherwise, create one.
+        Create (once) a default storage account <vm name>XXXX, where XXXX is a random number.
+        NOTE: If <vm name>XXXX exists, use it instead of failing.  Highly unlikely.
+        If this method is called multiple times across executions it will return the same
+        storage account created with the random name which is stored in a tag on the VM.
+
+        vm_dict is passed in during an update, so we can obtain the _own_sa_ tag and return
+        the default storage account we created in a previous invocation
 
         :return: storage account object
         '''
@@ -1853,6 +1971,15 @@ class AzureRMVirtualMachine(AzureRMModuleBase):
         if self.tags is None:
             self.tags = {}
 
+        if self.tags.get('_own_sa_', None):
+            # We previously created one in the same invocation
+            return self.get_storage_account(self.tags['_own_sa_'])
+
+        if vm_dict and vm_dict.get('tags', {}).get('_own_sa_', None):
+            # We previously created one in a previous invocation
+            # We must be updating, like adding boot diagnostics
+            return self.get_storage_account(vm_dict['tags']['_own_sa_'])
+
         # Attempt to find a valid storage account name
         storage_account_name_base = re.sub('[^a-zA-Z0-9]', '', self.name[:20].lower())
         for i in range(0, 5):
diff --git a/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine_facts.py b/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine_facts.py
index 56237db57df..02ccb13cfc4 100644
--- a/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine_facts.py
+++ b/lib/ansible/modules/cloud/azure/azure_rm_virtualmachine_facts.py
@@ -24,7 +24,7 @@ version_added: "2.7"
 short_description: Get virtual machine facts.
 
 description:
-  - Get facts for all virtual machines of a resource group.
+  - Get facts for one or all virtual machines in a resource group.
 
 options:
     resource_group:
@@ -76,6 +76,32 @@ vms:
             returned: always
             type: str
             sample: admin
+        boot_diagnostics:
+            description:
+                - Information about the boot diagnostics settings.
+            returned: always
+            type: complex
+            contains:
+                enabled:
+                    description:
+                        - Indicates if boot diagnostics are enabled.
+                    type: bool
+                    sample: true
+                storage_uri:
+                    description:
+                        - Indicates the storage account used by boot diagnostics.
+                    type: str
+                    sample: https://mystorageaccountname.blob.core.windows.net/
+                console_screenshot_uri:
+                    description:
+                        - Contains a URI to grab a console screenshot.
+                        - Only present if enabled.
+                    type: str
+                serial_console_log_uri:
+                    description:
+                        - Contains a URI to grab the serial console log.
+                        - Only present if enabled.
+                    type: str
         data_disks:
             description:
                 - List of attached data disks.
@@ -206,8 +232,7 @@ except Exception:
     # This is handled in azure_rm_common
     pass
 
-from ansible.module_utils.azure_rm_common import AzureRMModuleBase, azure_id_to_dict
-from ansible.module_utils.common.dict_transformations import camel_dict_to_snake_dict
+from ansible.module_utils.azure_rm_common import AzureRMModuleBase
 from ansible.module_utils.six.moves.urllib.parse import urlparse
 import re
 
@@ -358,6 +383,18 @@ class AzureRMVirtualMachineFacts(AzureRMModuleBase):
                     'id': image.get('id', None)
                 }
 
+        new_result['boot_diagnostics'] = {
+            'enabled': 'diagnosticsProfile' in result['properties'] and
+                       'bootDiagnostics' in result['properties']['diagnosticsProfile'] and
+                       result['properties']['diagnosticsProfile']['bootDiagnostics']['enabled'] or False,
+            'storage_uri': 'diagnosticsProfile' in result['properties'] and
+                           'bootDiagnostics' in result['properties']['diagnosticsProfile'] and
+                           result['properties']['diagnosticsProfile']['bootDiagnostics']['storageUri'] or None
+        }
+        if new_result['boot_diagnostics']['enabled']:
+            new_result['boot_diagnostics']['console_screenshot_uri'] = result['properties']['instanceView']['bootDiagnostics']['consoleScreenshotBlobUri']
+            new_result['boot_diagnostics']['serial_console_log_uri'] = result['properties']['instanceView']['bootDiagnostics']['serialConsoleLogBlobUri']
+
         vhd = result['properties']['storageProfile']['osDisk'].get('vhd')
         if vhd is not None:
             url = urlparse(vhd['uri'])
diff --git a/test/integration/targets/azure_rm_virtualmachine/tasks/main.yml b/test/integration/targets/azure_rm_virtualmachine/tasks/main.yml
index 2c7edd10847..e549ec3ac0a 100644
--- a/test/integration/targets/azure_rm_virtualmachine/tasks/main.yml
+++ b/test/integration/targets/azure_rm_virtualmachine/tasks/main.yml
@@ -1 +1,3 @@
+- include: setup.yml
 - include: virtualmachine.yml
+- include: teardown.yml
diff --git a/test/integration/targets/azure_rm_virtualmachine/tasks/setup.yml b/test/integration/targets/azure_rm_virtualmachine/tasks/setup.yml
new file mode 100644
index 00000000000..493f0a14ca3
--- /dev/null
+++ b/test/integration/targets/azure_rm_virtualmachine/tasks/setup.yml
@@ -0,0 +1,74 @@
+- name: Create random names
+  set_fact:
+      storage_account: "{{ resource_group | hash('md5') | truncate(24, True, '') }}"
+      storage_account2: "{{ resource_group | hash('md5') | truncate(18, True, '') }}"
+      vm_name1: "vm1{{ resource_group | hash('md5') | truncate(5, True, '') }}"
+      vm_name2: "vm2{{ resource_group | hash('md5') | truncate(5, True, '') }}"
+      vm_name3: "vm3{{ resource_group | hash('md5') | truncate(5, True, '') }}"
+      vm_name4: "vm4{{ resource_group | hash('md5') | truncate(5, True, '') }}"
+      abs_name1: "avbs1{{ resource_group | hash('md5') | truncate(3, True, '') }}"
+      abs_name2: "avbs2{{ resource_group | hash('md5') | truncate(3, True, '') }}"
+
+- name: Create storage account
+  azure_rm_storageaccount:
+      resource_group: "{{ resource_group }}"
+      name: "{{ storage_account }}"
+      account_type: Standard_LRS
+
+- name: Create 2nd storage account
+  azure_rm_storageaccount:
+      resource_group: "{{ resource_group }}"
+      name: "{{ storage_account2 }}"
+      account_type: Standard_LRS
+
+- name: Create an availability set
+  azure_rm_availabilityset:
+    name: "{{ abs_name1 }}"
+    resource_group: "{{ resource_group }}"
+
+- name: Create virtual network
+  azure_rm_virtualnetwork:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      address_prefixes: "10.10.0.0/16"
+
+- name: Add subnet
+  azure_rm_subnet:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      address_prefix: "10.10.0.0/24"
+      virtual_network: "{{ vm_name1 }}"
+
+- name: Create public ip
+  azure_rm_publicipaddress:
+      resource_group: "{{ resource_group }}"
+      allocation_method: Static
+      name: "{{ vm_name1 }}"
+
+- name: Create security group
+  azure_rm_securitygroup:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      purge_rules: yes
+      rules:
+        - name: ALLOW_SSH
+          protocol: Tcp
+          destination_port_range: 22
+          access: Allow
+          priority: 100
+          direction: Inbound
+        - name: ALLOW_HTTP
+          protocol: Tcp
+          destination_port_range: 80
+          access: Allow
+          priority: 110
+          direction: Inbound
+
+- name: Create NIC for single nic VM
+  azure_rm_networkinterface:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      virtual_network: "{{ vm_name1 }}"
+      subnet: "{{ vm_name1 }}"
+      public_ip_name: "{{ vm_name1 }}"
+      security_group: "{{ vm_name1 }}"
diff --git a/test/integration/targets/azure_rm_virtualmachine/tasks/teardown.yml b/test/integration/targets/azure_rm_virtualmachine/tasks/teardown.yml
new file mode 100644
index 00000000000..08b1cacc65d
--- /dev/null
+++ b/test/integration/targets/azure_rm_virtualmachine/tasks/teardown.yml
@@ -0,0 +1,62 @@
+- name: Destroy NIC for single nic VM
+  azure_rm_networkinterface:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      state: absent
+
+- name: Destroy 2nd security group
+  azure_rm_securitygroup:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name2 }}"
+      state: absent
+
+- name: Destroy security group
+  azure_rm_securitygroup:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      state: absent
+
+- name: Destroy subnet
+  azure_rm_subnet:
+      resource_group: "{{ resource_group }}"
+      virtual_network: "{{ vm_name1 }}"
+      name: "{{ vm_name1 }}"
+      state: absent
+
+- name: Destroy virtual network
+  azure_rm_virtualnetwork:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      state: absent
+
+- name: Destroy public ip
+  azure_rm_publicipaddress:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      state: absent
+
+- name: Destroy 2nd availability set
+  azure_rm_availabilityset:
+      resource_group: "{{ resource_group }}"
+      name: "{{ abs_name2 }}"
+      state: absent
+
+- name: Destroy an availability set
+  azure_rm_availabilityset:
+      resource_group: "{{ resource_group }}"
+      name: "{{ abs_name1 }}"
+      state: absent
+
+- name: Destroy 2nd storage account
+  azure_rm_storageaccount:
+      resource_group: "{{ resource_group }}"
+      name: "{{ storage_account2 }}"
+      force_delete_nonempty: true
+      state: absent
+
+- name: Destroy storage account
+  azure_rm_storageaccount:
+      resource_group: "{{ resource_group }}"
+      name: "{{ storage_account }}"
+      force_delete_nonempty: true
+      state: absent
diff --git a/test/integration/targets/azure_rm_virtualmachine/tasks/virtualmachine.yml b/test/integration/targets/azure_rm_virtualmachine/tasks/virtualmachine.yml
index 56d361ba5fe..9ee36ca869e 100644
--- a/test/integration/targets/azure_rm_virtualmachine/tasks/virtualmachine.yml
+++ b/test/integration/targets/azure_rm_virtualmachine/tasks/virtualmachine.yml
@@ -1,71 +1,4 @@
-- name: Create random names
-  set_fact:
-      storage_account: "{{ resource_group | hash('md5') | truncate(24, True, '') }}"
-      vm_name1: "vm1{{ resource_group | hash('md5') | truncate(5, True, '') }}"
-      vm_name2: "vm2{{ resource_group | hash('md5') | truncate(5, True, '') }}"
-      vm_name3: "vm3{{ resource_group | hash('md5') | truncate(5, True, '') }}"
-      abs_name1: "avbs1{{ resource_group | hash('md5') | truncate(3, True, '') }}"
-      abs_name2: "avbs2{{ resource_group | hash('md5') | truncate(3, True, '') }}"
-
-- name: Create storage account
-  azure_rm_storageaccount:
-      resource_group: "{{ resource_group }}"
-      name: "{{ storage_account }}"
-      account_type: Standard_LRS
-
-- name: Create an availability set
-  azure_rm_availabilityset:
-    name: "{{ abs_name1 }}"
-    resource_group: "{{ resource_group }}"
-
-- name: Create virtual network
-  azure_rm_virtualnetwork:
-      resource_group: "{{ resource_group }}"
-      name: "{{ vm_name1 }}"
-      address_prefixes: "10.10.0.0/16"
-
-- name: Add subnet
-  azure_rm_subnet:
-      resource_group: "{{ resource_group }}"
-      name: "{{ vm_name1 }}"
-      address_prefix: "10.10.0.0/24"
-      virtual_network: "{{ vm_name1 }}"
-
-- name: Create public ip
-  azure_rm_publicipaddress:
-      resource_group: "{{ resource_group }}"
-      allocation_method: Static
-      name: "{{ vm_name1 }}"
-
-- name: Create security group
-  azure_rm_securitygroup:
-      resource_group: "{{ resource_group }}"
-      name: "{{ vm_name1 }}"
-      purge_rules: yes
-      rules:
-        - name: ALLOW_SSH
-          protocol: Tcp
-          destination_port_range: 22
-          access: Allow
-          priority: 100
-          direction: Inbound
-        - name: ALLOW_HTTP
-          protocol: Tcp
-          destination_port_range: 80
-          access: Allow
-          priority: 110
-          direction: Inbound
-
-- name: Create NIC for single nic VM
-  azure_rm_networkinterface:
-      resource_group: "{{ resource_group }}"
-      name: "{{ vm_name1 }}"
-      virtual_network: "{{ vm_name1 }}"
-      subnet: "{{ vm_name1 }}"
-      public_ip_name: "{{ vm_name1 }}"
-      security_group: "{{ vm_name1 }}"
-
-- name: Create virtual machine with a single NIC
+- name: Create virtual machine with a single NIC and no boot diagnostics
   register: output
   azure_rm_virtualmachine:
       resource_group: "{{ resource_group }}"
@@ -91,7 +24,92 @@
 
 - assert:
       that:
+        - azure_vm.properties.provisioningState == 'Succeeded'
         - azure_vm.properties.availabilitySet.id
+        # initial response from creation has no diagnosticsProfile
+        # if you run it again however, there is one in the response
+        # so we handle both cases
+        - "'diagnosticsProfile' not in azure_vm.properties or not azure_vm.properties.diagnosticsProfile.bootDiagnostics.enabled"
+
+- name: Get facts for virtual machine without boot diagnostics disabled
+  azure_rm_virtualmachine_facts:
+    resource_group: "{{ resource_group }}"
+    name: "{{ vm_name1 }}"
+  register: output
+
+- assert:
+    that:
+      - output.vms != []
+      - not output.vms[0].boot_diagnostics.enabled
+      - not output.vms[0].boot_diagnostics.storage_uri
+
+- name: Enable boot diagnostics on an existing VM for the first time without specifying a storage account
+  azure_rm_virtualmachine:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      boot_diagnostics:
+        enabled: true
+        # without specifying storage_account you get a new default storage account for the VM
+  register: output
+
+- assert:
+    that:
+      - azure_vm.properties.diagnosticsProfile.bootDiagnostics.enabled
+      - azure_vm.properties.diagnosticsProfile.bootDiagnostics.storageUri is defined
+      - azure_vm.properties.instanceView.bootDiagnostics.consoleScreenshotBlobUri is defined
+      - azure_vm.properties.instanceView.bootDiagnostics.serialConsoleLogBlobUri is defined
+
+- name: Get facts for virtual machine with boot diagnostics enabled
+  azure_rm_virtualmachine_facts:
+    resource_group: "{{ resource_group }}"
+    name: "{{ vm_name1 }}"
+  register: output
+
+- assert:
+    that:
+      - output.vms != []
+      - output.vms[0].boot_diagnostics.enabled
+      - output.vms[0].boot_diagnostics.storage_uri is defined
+      - output.vms[0].boot_diagnostics.console_screenshot_uri is defined
+      - output.vms[0].boot_diagnostics.serial_console_log_uri is defined
+
+- name: Change the boot diagnostics storage account while enabled
+  azure_rm_virtualmachine:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      boot_diagnostics:
+        enabled: true
+        storage_account: "{{ storage_account2 }}"
+  ignore_errors: true
+  register: output
+
+- name: Disable boot diagnostics and change the storage account at the same time
+  azure_rm_virtualmachine:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      boot_diagnostics:
+        enabled: false
+        storage_account: "{{ storage_account }}"
+  register: output
+
+- assert:
+    that:
+      - not azure_vm.properties.diagnosticsProfile.bootDiagnostics.enabled
+
+- name: Re-enable boot diagnostics on an existing VM where it was previously configured
+  azure_rm_virtualmachine:
+      resource_group: "{{ resource_group }}"
+      name: "{{ vm_name1 }}"
+      boot_diagnostics:
+        enabled: true
+  register: output
+
+- assert:
+    that:
+      - azure_vm.properties.diagnosticsProfile.bootDiagnostics.enabled
+      - azure_vm.properties.diagnosticsProfile.bootDiagnostics.storageUri is defined
+      - azure_vm.properties.instanceView.bootDiagnostics.consoleScreenshotBlobUri is defined
+      - azure_vm.properties.instanceView.bootDiagnostics.serialConsoleLogBlobUri is defined
 
 # - add_host:
 #       name: new_azure_vm
@@ -244,8 +262,7 @@
 - assert:
       that: azure_publicipaddresses | length == 0
 
-- name: Create virtual machine without public ip address
-  register: output
+- name: Create virtual machine without public ip address and with boot diagnostics enabled
   azure_rm_virtualmachine:
       resource_group: "{{ resource_group }}"
       name: testvmnoip
@@ -256,14 +273,21 @@
       os_type: Linux
       public_ip_allocation_method: Disabled
       availability_set: "{{ abs_name1 }}"
+      boot_diagnostics:
+        enabled: true
       image:
         offer: UbuntuServer
         publisher: Canonical
         sku: 16.04-LTS
         version: latest
+  register: output
 
 - assert:
       that:
+        - azure_vm.properties.diagnosticsProfile.bootDiagnostics.enabled
+        - azure_vm.properties.diagnosticsProfile.bootDiagnostics.storageUri is defined
+        - azure_vm.properties.instanceView.bootDiagnostics.consoleScreenshotBlobUri is defined
+        - azure_vm.properties.instanceView.bootDiagnostics.serialConsoleLogBlobUri is defined
         - not 'publicIPAddress' in output.ansible_facts.azure_vm.properties.networkProfile.networkInterfaces[0].properties.ipConfigurations[0].properties
 
 - name: Delete VM with no public ip
@@ -271,6 +295,7 @@
       resource_group: "{{ resource_group }}"
       name: testvmnoip
       state: absent
+      remove_on_absent: all_autocreated
       vm_size: Standard_A0
   async: 5000
   poll: 0
@@ -280,7 +305,7 @@
          - name: testnic011
            resource_group: "{{ resource_group_secondary }}"
          - name: testnic012
-           resource_group: "{{ resource_group_secondary  }}"
+           resource_group: "{{ resource_group_secondary }}"
 
 - name: Create an availability set
   azure_rm_availabilityset:
@@ -307,11 +332,10 @@
       name: "{{ item.name }}"
       virtual_network: "{{ vn.state.id }}"
       subnet: "{{ vm_name2 }}"
-      security_group: "{{ vm_name1 }}"
+      security_group: "{{ vm_name2 }}"
   loop: "{{ niclist }}"
 
 - name: Create virtual machine with two NICs
-  register: output
   azure_rm_virtualmachine:
       resource_group: "{{ resource_group }}"
       name: "{{ vm_name2 }}"
@@ -334,6 +358,8 @@
         version: latest
       tags:
         abc: def
+  register: output
+
 - assert:
       that:
         - azure_vm.properties.availabilitySet.id
@@ -350,7 +376,7 @@
     that: 
       - results.vms | length == 1
       - results.vms[0].name == "{{ vm_name2 }}"
-      - results.vms[0].location == 'eastus'
+      - results.vms[0].location
       - results.vms[0].admin_username == 'adminuser'
       - results.vms[0].resource_group == "{{ resource_group }}"
       - results.vms[0].power_state != None
@@ -548,6 +574,7 @@
 - name: Assert that autocreated resources were deleted
   assert:
     that: 
+      # what about the default storage group?
       - output_nic.ansible_facts.azure_networkinterfaces | length == 0
       - output_nsg.ansible_facts.azure_securitygroups | length == 0
       - output_pip.ansible_facts.azure_publicipaddresses | length == 0