I have gone through the follwoing article to understand how vm will get ip?

https://github.com/cloudandbigdatalab...

Step7: Following the request to create a new port, Neutron service creates a new port. It is important to recollect that a port, in our context, means a pair of MAC and IP address. Not only does neutron creates these, it also persists them in neutron database. Now our VM has an IP address and the virtual NIC of the VM has a MAC address.

Step8: The neutron service sends a RPC message to the DHCP agent on the network node to notify the DHCP agent about the newly created VM and the IP and MAC it is associated with. The DHCP agent updates its internal files so that next time it receives request for IP address from same VM it can get it out accurately.

I got little bit confused about ip allocation.

I was having the understanding dhcp agent is responsible to allocate the ip but step 7 says neutron service allocates the ip and in step 8, its just notifies the dhcp agent to update the internal files about the ip.

please clarify me and explain little bit more about dnsmasq involvement in the procedure of allocation of ip?