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I'm seeing a lot of products, such as SQL Server, coming out with opt-out spyware. This is marketed as "Telemtry" or "Customer Experience Improvement Program (CEIP)".

Obviously, this can currently be disabled in the software itself. What settings on the firewall can I take to block this kind of communication with Microsoft (ip/port) blocking?

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You can block

vortex.data.microsoft.com
tempuri.org

You can see that's what they're communicating to in the client-side telemetry with mssql-cli, and vscode-extension-telemtry. And, for SQL Server, you can find out how to turn them off on the client and server here

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