Configure Microsoft peering

2.3 Azure ExpressRoute

📘Microsoft Azure Networking Solutions (AZ-700)


1. What Is Microsoft Peering?

Microsoft peering is one of the routing options available in Azure ExpressRoute.

It allows your on-premises network to privately connect to:

  • Microsoft 365 services (such as Exchange Online, SharePoint Online, Teams)
  • Azure PaaS services (like Azure Storage, Azure SQL Database)
  • Other Microsoft public services that use public IP addresses

👉 Important: Microsoft peering is used to access Microsoft public services over a private connection, instead of using the public internet.


2. ExpressRoute Peering Types (Exam Comparison)

In ExpressRoute, there are three main peering types:

  1. Azure Private Peering
  2. Microsoft Peering
  3. Azure Public Peering (retired – not used anymore)

For the AZ-700 exam, clearly understand:

Peering TypeUsed ForIP Type
Private PeeringAzure Virtual Networks (IaaS)Private IP
Microsoft PeeringMicrosoft public servicesPublic IP

Microsoft peering uses public IP addresses, but traffic still travels through the private ExpressRoute circuit, not the internet.

This is a very important exam point.


3. Why Use Microsoft Peering?

Organizations use Microsoft peering when:

  • They want secure, private access to Microsoft 365
  • They want predictable latency and performance
  • They do not want traffic to go over the public internet
  • They require compliance and security controls

Example in an IT environment:

A company has its users on-premises and wants:

  • Private connectivity to Exchange Online
  • Secure data upload to Azure Storage
  • Direct access to Azure SQL Database over ExpressRoute

In this case, Microsoft peering is required.


4. How Microsoft Peering Works

Microsoft peering uses:

  • BGP (Border Gateway Protocol)
  • Public IP address space
  • Route filtering
  • VLAN tagging

Let’s break this down clearly.


5. IP Address Requirements (Very Important for Exam)

Microsoft peering requires:

1️⃣ Public IP Addresses

You must use:

  • Public IPv4 addresses
  • Owned by your organization
  • Registered with a public registry
  • Valid and verifiable

You cannot use:

  • Private IP addresses
  • Fake public IPs

Microsoft verifies ownership of public IP ranges.


2️⃣ NAT Requirement (Mandatory)

Even if your internal network uses private IP addresses (like 10.x.x.x), you must:

  • Perform Source NAT (SNAT) to a public IP before sending traffic to Microsoft

This is mandatory for Microsoft peering.

Why?

Because Microsoft services expect public IP addresses.

This is a common exam question:

Microsoft peering requires NAT to public IP addresses.


6. BGP Configuration

Microsoft peering uses:

  • eBGP (external BGP)
  • Autonomous System Number (ASN)

Requirements:

  • You need a public ASN (or private ASN with validation)
  • You configure BGP on your edge router
  • You exchange routes with Microsoft

You must configure:

  • Primary and secondary BGP sessions
  • Two IP subnets (/30 or /31)
  • VLAN ID

Redundancy is always required in ExpressRoute.


7. Route Filtering (Very Important)

By default, Microsoft does NOT advertise all Microsoft service routes.

You must:

  • Create a Route Filter
  • Select BGP Communities
  • Attach the route filter to Microsoft peering

Why Route Filters?

Because Microsoft offers many services.
You must choose which services you want access to.

Example service categories:

  • Microsoft 365
  • Azure PaaS
  • Dynamics 365

You only receive routes for selected services.

Exam point:

Microsoft peering requires a route filter to receive routes.

Without a route filter:

  • No routes are received.

8. Microsoft 365 and Microsoft Peering

Accessing Microsoft 365 over ExpressRoute requires:

  • Microsoft peering
  • Route filter
  • Approval from Microsoft

Not all Microsoft 365 services support ExpressRoute access.

Important:
Microsoft recommends internet connectivity for many Microsoft 365 services.

Exam question tip:
If a scenario says:

  • “Private connectivity to Microsoft 365”
    The answer is:
  • Microsoft peering

9. Service Provider vs ExpressRoute Direct

Microsoft peering works with:

  • Service provider ExpressRoute
  • ExpressRoute Direct

ExpressRoute Direct provides:

  • Dedicated 10 Gbps or 100 Gbps ports
  • Direct connection to Microsoft edge

Microsoft peering configuration principles remain the same.


10. Security Considerations

Microsoft peering:

  • Uses public IP addresses
  • Requires NAT
  • Uses BGP authentication (optional MD5)
  • Supports Microsoft 365 route control

Security best practices:

  • Use route filters
  • Advertise only required prefixes
  • Monitor BGP routes
  • Use firewalls for traffic inspection

11. High Availability Requirements

ExpressRoute circuits always require:

  • Dual connections
  • Primary and secondary links
  • Redundant routers

Microsoft peering must also be configured on both connections.

Failing to configure redundancy may cause connectivity loss.


12. Step-by-Step Configuration Overview (High-Level)

For exam knowledge, understand the logical steps:

  1. Create ExpressRoute circuit
  2. Provision circuit with service provider
  3. Configure Microsoft peering
  4. Provide:
    • Public IP prefixes
    • ASN
    • VLAN ID
  5. Configure BGP on on-prem router
  6. Create Route Filter
  7. Attach Route Filter to Microsoft peering
  8. Validate route advertisement

You should understand this order conceptually.


13. Common Exam Scenarios

Scenario 1

Company wants private access to Azure VMs.
Answer → Azure Private Peering.

Scenario 2

Company wants private access to Microsoft 365.
Answer → Microsoft Peering.

Scenario 3

Company wants to use private IP addresses only.
Answer → Not possible with Microsoft peering (requires public IP + NAT).

Scenario 4

Routes are not received after configuring Microsoft peering.
Answer → Route filter not configured.


14. Limitations

  • Requires public IP ownership
  • Requires NAT
  • Requires route filter
  • Not all Microsoft services support ExpressRoute
  • More complex than private peering

15. Key Differences: Private vs Microsoft Peering

FeaturePrivate PeeringMicrosoft Peering
IP TypePrivate IPPublic IP
NAT RequiredNoYes
Route Filter RequiredNoYes
Used ForAzure VNetMicrosoft Public Services
Microsoft 365NoYes

Memorize this comparison for the exam.


16. Important Exam Keywords

If you see these words in the question:

  • Microsoft 365
  • Office 365
  • Exchange Online
  • SharePoint Online
  • Public services
  • Public IP requirement
  • Route filter
  • NAT requirement

The topic is most likely Microsoft peering.


17. Summary (Quick Revision)

Microsoft peering in Azure ExpressRoute:

  • Connects to Microsoft public services
  • Uses public IP addresses
  • Requires NAT
  • Uses BGP
  • Requires route filter
  • Supports Microsoft 365
  • Requires IP ownership verification
  • Needs redundant configuration

Final Exam Advice

For AZ-700:

You must clearly understand:

  • When to choose Microsoft peering
  • Public IP + NAT requirement
  • Route filter requirement
  • BGP configuration basics
  • Difference from private peering

If you master these points, you will confidently answer Microsoft peering questions in the AZ-700 exam.

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