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Challenge 11: Azure Networking Basics

Estimated Time

25-35 min | Cost: Free | Domain: Azure Architecture & Services (35-40%)

Exam skills covered

  • Describe virtual networking (VNets, subnets, peering)
  • Define public and private endpoints

Overview

Azure Virtual Networks (VNets) are the fundamental building block for networking in Azure. They enable Azure resources to securely communicate with each other, the internet, and on-premises networks.

Think of a VNet like your own private network in the cloud — similar to a traditional network you'd operate in your own datacenter, but with the benefits of Azure's scale, availability, and isolation.

Explore

Task 1: Understand VNet concepts

ConceptDescriptionOn-prem equivalent
Virtual Network (VNet)Isolated network in AzureLAN/WAN
SubnetSegment within a VNetVLAN
Network Security Group (NSG)Firewall rules for trafficACL / Firewall rules
Public IPInternet-facing IP addressPublic IP
Private IPInternal-only IP addressRFC 1918 address
VNet PeeringConnect two VNetsWAN link between offices

Task 2: Explore VNet creation (don't create)

  1. In Azure Portal, search for Virtual networks
  2. Click + Create
  3. Explore the form:
    • Address space: Define the IP range (e.g., 10.0.0.0/16)
    • Subnets: Divide the VNet (e.g., 10.0.1.0/24 for web, 10.0.2.0/24 for database)
  4. Notice that VNets are free — you only pay for data transfer
  5. Click Cancel

Task 3: Understand IP addressing

Challenge 11 - Virtual Network Topology

Note: Azure reserves 5 IPs in each subnet (first 4 + last 1), so a /24 has 251 usable addresses.

Task 4: Understand public vs private endpoints

Endpoint typeAccessible fromUse case
Public endpointInternet + internalWeb servers, public APIs
Private endpointInternal VNet onlyDatabases, internal services
Service endpointVNet to Azure service (optimized route)Storage, SQL from within VNet

Private endpoints keep traffic on Microsoft's backbone network — never touching the public internet.

Task 5: Understand VNet peering

VNet peering connects two VNets so resources can communicate:

Peering typeScopeLatency
Regional peeringSame regionVery low
Global peeringDifferent regionsLow (via Microsoft backbone)

Key rules:

  • Peered VNets can't have overlapping IP ranges
  • Peering is NOT transitive (A↔B + B↔C ≠ A↔C)
  • Traffic between peered VNets stays on Microsoft's network
Azure CLI Alternative
# List virtual networks (if any exist)
az network vnet list --output table

# Show available address prefixes (example)
az network vnet show --name myVnet --resource-group rg-az900-learning --query "addressSpace" 2>/dev/null || echo "No VNet exists yet - that's fine!"

Key Concepts

ConceptDescription
VNetPrivate network in Azure; resources communicate securely
SubnetSegment of a VNet with its own address range and NSG
NSGStateful firewall rules (allow/deny traffic by port, IP, protocol)
Public endpointService accessible from the internet
Private endpointService accessible only from within a VNet
VNet peeringConnects two VNets for private communication
Non-transitiveIf A↔B and B↔C, A cannot reach C without direct peering

Knowledge Check

1. What is the purpose of an Azure Virtual Network (VNet)?

2. A company wants to ensure their Azure SQL Database is only accessible from their VNet and never from the internet. What should they use?

3. VNet A is peered with VNet B, and VNet B is peered with VNet C. Can resources in VNet A communicate directly with resources in VNet C?

4. What is a subnet in Azure networking?

5. Which resource acts as a firewall to control inbound and outbound traffic to Azure resources?

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