Azure service automatic DNS registration

I am using Azure virtual networks, and I want to connect several cloud services with this network. We have setup a virtual machine as DNS server, inside same network.

What I understand from the docs, is that, if I set a Dns element bellow the NetworkConfiguration element in my service config, I should be able to use the DNS server for name resolution.

<Dns><DnsServers><DnsServer name="mydns" IPAddress="10.1.1.4"/></DnsServers></Dns>

What I was expecting, is that once I deploy a new service with this configuration set-up, I should see it registered with my DNS server. So if I query the records for my zone it should be there, but it is not.

dnscmd /enumrecords {ZONE} {NAME}

I am understanding incorrectly what this feature does, or indeed it should work and there must be an issue with my configuration? I have the virtual netwok setup in my service config, and I am deploying in the same affinity group as the VPN.

Thanks.