Create a virtual network (VNet)

1.1 Design and Implement IP Addressing for Azure Resources

📘Microsoft Azure Networking Solutions (AZ-700)


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

An Azure Virtual Network (VNet) is a private network inside Azure.

It allows Azure resources such as:

  • Virtual machines (VMs)
  • Azure services
  • Containers

to communicate securely with each other.

A VNet works like a private IP network in a data center, but it is fully managed by Azure.

Key Points for Exam

  • A VNet is isolated by default
  • Only resources inside the VNet can communicate unless you allow access
  • VNets use private IP addressing

2. Why Do We Create a VNet?

You create a VNet to:

  • Control IP addressing
  • Control network traffic
  • Secure communication between Azure resources
  • Connect Azure to on-premises networks or other VNets

AZ-700 Focus

The exam checks if you understand:

  • How VNets are created
  • How IP ranges are planned
  • How subnetting works inside a VNet

3. Core Components of a VNet

When creating a VNet, you must understand these components:

3.1 Address Space

An address space defines the IP range for the VNet.

  • Uses private IP ranges
  • Written in CIDR format

Common Private IP Ranges

  • 10.0.0.0/8
  • 172.16.0.0/12
  • 192.168.0.0/16

Exam Rules

  • Address spaces must not overlap with other VNets or on-premises networks
  • IP planning is critical before creating the VNet

3.2 Subnets

A subnet divides a VNet into smaller networks.

  • Every VNet must have at least one subnet
  • Subnets help organize resources
  • Each subnet has its own IP range

Important Subnet Rules

  • Subnet IP range must be inside the VNet address space
  • Subnet ranges cannot overlap
  • Subnets can be resized (with limits)

Exam Tip

Azure reserves 5 IP addresses in every subnet:

  • First IP (network address)
  • Last IP (broadcast)
  • 3 additional Azure-reserved addresses

4. Steps to Create a Virtual Network (Conceptual)

The exam does not test button-clicking, but you must know the logical steps.

Step 1: Choose Subscription and Resource Group

  • VNets must belong to a resource group
  • Resource group controls management and access

Step 2: Define VNet Name and Region

  • VNets are regional
  • Resources communicate faster inside the same region

Step 3: Configure Address Space

  • Define the main IP range for the VNet
  • Use CIDR notation

Step 4: Create Subnets

  • Create one or more subnets
  • Assign smaller IP ranges from the VNet address space

5. VNet Region and Scope

Regional Scope

  • A VNet exists in one Azure region
  • Resources in different regions need:
    • VNet peering
    • VPN
    • ExpressRoute

Exam Reminder

VNets cannot span regions, but can connect across regions.


6. Default Settings During VNet Creation

When creating a VNet, Azure allows you to configure:

6.1 DNS Settings

  • Azure provides default DNS
  • You can specify custom DNS servers

Exam Focus

Custom DNS is often used when:

  • Integrating with on-premises environments
  • Using private name resolution

6.2 Security Defaults

VNets are:

  • Private by default
  • No inbound internet access unless configured

Security is enforced using:

  • Network Security Groups (NSGs)
  • Azure Firewall (advanced scenarios)

7. Important Design Considerations (Very Important for Exam)

7.1 IP Address Planning

  • Plan for future growth
  • Avoid overlapping IP ranges
  • Consider hybrid connectivity

7.2 Subnet Size Planning

  • Small subnets can cause IP exhaustion
  • Azure reserves IPs automatically

7.3 Service Requirements

Some Azure services require:

  • Dedicated subnets
  • Specific subnet names
  • Minimum subnet sizes

This is commonly tested in scenario-based questions.


8. VNet and Azure Services Integration

A VNet can integrate with:

  • Virtual machines
  • Load balancers
  • Application gateways
  • Private endpoints
  • VPN gateways

Exam Tip

Not all Azure services need a VNet, but many advanced networking services do.


9. VNet Limits (High-Level Awareness)

For the exam, remember:

  • VNets have limits (subnets, IPs, peerings)
  • Limits depend on:
    • Subscription
    • Azure region
  • Limits can often be increased by request

You are not expected to memorize numbers, but you should know limits exist.


10. Common Exam Mistakes to Avoid

❌ Overlapping address spaces
❌ Forgetting subnet IP reservations
❌ Assuming VNets span regions
❌ Thinking VNets allow internet access by default


11. How This Topic Appears in the AZ-700 Exam

You may see:

  • Scenario-based questions
  • IP range selection questions
  • Subnet planning questions
  • Hybrid network design questions

Example Exam Focus Areas

  • Choose correct address space
  • Identify correct subnet design
  • Understand when VNets can or cannot communicate

12. Key Takeaways (Must Remember)

✔ A VNet is a private network in Azure
✔ VNets require IP address planning
✔ Subnets divide VNets into smaller networks
✔ VNets are region-specific
✔ Proper design prevents future network issues

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