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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?

Learn More​