I have Delphix running using VMWare Hypervisor. i have created a linux VM(ubuntu) in same network and installed Mysql 5.6 into it. what is the exact procedure to fetch the Databases available into Delphix interfaces.
The Delphix Engine will only run on VMware, AWS EC2, and Openstack KVM.
Delphix does not care what hardware/virtualization underpins your RedHat VM, but Delphix needs to reside "near" to the target RedHat VM to which you will be provisioning. So, if your engine and target VM are on premise while your source MySQL DB is in Azure, then you should be fine. If your Target VM is in Azure while your engine is on premise, this configuration might not even be performant enough for a demo.
As to the RedHat 7 question, we have only tested to RedHat 6.4, so it may or may not work.