The correct first step is to renumber one VNet to a non-overlapping address range before creating the peering. Azure VNet peering requires that the address spaces of the two virtual networks do not overlap, because overlapping ranges prevent proper routing and name resolution between the peered networks. In this scenario, 10.20.128.0/17 is a subset of 10.20.0.0/16, so the peering will fail with an error about overlapping address spaces. On the AZ-104 exam, this question tests your understanding of VNet peering prerequisites and the fact that you cannot simply “force” a peering over overlapping ranges—you must resolve the conflict first. A common trap is to think you can use a gateway transit or network virtual appliance to work around the overlap, but the simplest and most operationally minimal solution is to renumber one VNet entirely. Remember the memory tip: “Peering pairs must be parallel, not partial”—if one range fits inside another, peering won’t start.
AZ-104 Implement and Manage Virtual Networking Practice Question
This AZ-104 practice question tests your understanding of implement and manage virtual networking. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
A company merged with another business, and two Azure virtual networks need to be peered for shared application access. One VNet uses 10.20.0.0/16 and the other uses 10.20.128.0/17. The administrator must make the peering work with minimal operational complexity. What should be done first?
Clue words in this question
Noticing these words before you look at the options changes how you read each choice.
Clue: "first"
Why it matters: Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Renumber one VNet to a non-overlapping address range before creating the peering.
Azure VNet peering requires non-overlapping address spaces. The two VNets (10.20.0.0/16 and 10.20.128.0/17) overlap because 10.20.128.0/17 is a subset of 10.20.0.0/16. Peering will fail with an error about overlapping address ranges. Renumbering one VNet to a non-overlapping range (e.g., 10.21.0.0/16) is the only way to satisfy the prerequisite for peering with minimal operational complexity.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
✗
Create a route table on both VNets and point the overlapping prefixes to a virtual appliance.
Why it's wrong here
Route tables do not resolve overlapping address spaces required for peering to succeed.
✓
Renumber one VNet to a non-overlapping address range before creating the peering.
Why this is correct
Peering requires non-overlapping CIDR ranges, so one network must be redesigned first.
Clue confirmation
The clue word "first" in the question point toward this answer.
Related concept
Read the scenario before looking for a memorised answer.
✗
Enable gateway transit on both VNets so overlapping ranges can be routed around.
Why it's wrong here
Gateway transit helps with shared gateways, but it does not allow overlapping spaces.
✗
Create a private endpoint in each VNet for the applications that need access.
Why it's wrong here
Private endpoints connect to services, not to general VNet-to-VNet peering requirements.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates assume overlapping ranges can be handled with routing or network virtual appliances, but Azure VNet peering has a hard requirement for non-overlapping address spaces at creation time, and no post-peering configuration can override this.
Detailed technical explanation
How to think about this question
Azure VNet peering uses the underlying Azure backbone to route traffic between VNets, and the Azure Resource Manager enforces a strict check that no address ranges overlap before allowing the peering link to be created. Overlapping ranges cause routing ambiguity because Azure cannot determine which VNet should own a given IP address. In a real-world scenario, renumbering a VNet requires careful planning—you must update all dependent resources (NICs, NSGs, route tables, DNS) and may need to use Azure Resource Mover or redeploy workloads, which is why the question emphasizes 'minimal operational complexity' by doing it first.
KKey Concepts to Remember
Read the scenario before looking for a memorised answer.
Find the constraint that changes the correct option.
Eliminate answers that are true in general but not in this case.
TExam Day Tips
→Watch for words such as best, first, most likely and least administrative effort.
→Review why wrong options are wrong, not only why the correct option is correct.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
How this comes up in practice
A company's IT admin needs to give a contractor read-only access to production logs without sharing account credentials. Using role-based access control (RBAC) and temporary scoped permissions — not a permanent shared password — is the correct pattern. Questions like this test whether you can apply least-privilege access across cloud identity services.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-104 question in full detail.
Implement and Manage Virtual Networking — This question tests Implement and Manage Virtual Networking — Read the scenario before looking for a memorised answer..
What is the correct answer to this question?
The correct answer is: Renumber one VNet to a non-overlapping address range before creating the peering. — Azure VNet peering requires non-overlapping address spaces. The two VNets (10.20.0.0/16 and 10.20.128.0/17) overlap because 10.20.128.0/17 is a subset of 10.20.0.0/16. Peering will fail with an error about overlapping address ranges. Renumbering one VNet to a non-overlapping range (e.g., 10.21.0.0/16) is the only way to satisfy the prerequisite for peering with minimal operational complexity.
What should I do if I get this AZ-104 question wrong?
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Are there clue words in this question I should notice?
Yes — watch for: "first". Order matters here. You are being tested on which action comes before the others — not which action is generally useful.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
About these practice questions
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
This AZ-104 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the AZ-104 exam.
Question Discussion
Share a tip, memory trick, or ask about the reasoning behind this question. Do not post real exam questions, leaked content, braindumps, or copyrighted exam material. Comments are moderated and may be removed without notice.
Sign in to join the discussion.