AZ-104 Implement and Manage Virtual Networking Practice Question
A company plans a new spoke virtual network that must be peered to an existing hub VNet using 10.0.0.0/16. The spoke will need two subnets: one sized for about 120 VMs and another for about 40 VMs. The new address space must not overlap the hub or the on-premises range 10.1.0.0/16. Which VNet address space is the best choice?
⚠ Common exam trap
The trap here is that candidates often overlook the hub VNet's address space (10.0.0.0/16) and incorrectly assume a smaller subnet like 10.0.1.0/24 is safe, not realizing it falls within the hub's larger CIDR range.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
10.2.0.0/22
(10.2.0.0/22) is correct because it provides a non-overlapping address space with the hub VNet (10.0.0.0/16) and on-premises (10.1.0.0/16). The /22 prefix offers 1024 IP addresses, which is sufficient for subnets supporting 120 VMs and 40 VMs, while avoiding any overlap with the existing ranges.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
10.0.1.0/24
Why it's wrong here
This address range falls entirely within the hub VNet's address space (assuming a hub like 10.0.0.0/16), causing an overlapping IP space. Azure virtual network peering requires that neither VNet's address space can overlap with the other's, otherwise peering fails or routing becomes ambiguous. Additionally, a single /24 provides only 251 host addresses, which is too restrictive for a spoke intended to host dozens or hundreds of VMs across multiple subnets.
When this WOULD be correct
If the hub VNet used a different address space (e.g., 10.1.0.0/16) and the on-premises range was 10.2.0.0/16, then 10.0.1.0/24 would be a non-overlapping choice for a small spoke.
- ✗
10.1.0.0/22
Why it's wrong here
While this range does not overlap the hub VNet, it overlaps the on-premises corporate network address range, which is commonly connected via hub VPN gateway or ExpressRoute. In a hub-spoke topology, the spoke relies on the hub to route to on-premises; any overlapping prefix creates a routing conflict, causing traffic to be sent locally instead of through the hub or resulting in asymmetric routing. This violates the requirement for unique, non-conflicting address spaces across the entire connected topology, not just between peered VNets.
When this WOULD be correct
If the on-premises range were different (e.g., 10.3.0.0/16) and the hub VNet used 10.0.0.0/16, then 10.1.0.0/22 would be a non-overlapping choice that provides sufficient IP addresses for the required subnets.
- ✓
10.2.0.0/22
Why this is correct
This address space does not overlap the hub or on-premises ranges and is large enough to carve out two usable subnets for the workload. A /22 gives room for multiple subnets and future growth, which is important when planning a spoke that needs to host dozens or hundreds of VMs. It is a practical choice for peering compatibility and capacity.
- ✗
10.0.0.0/24
Why it's wrong here
This is part of the hub's own address space, specifically the first /24 of a typical 10.0.0.0/16, so using it for the spoke would create a direct IP address overlap that prevents peering. Azure VNet peering enforces that address spaces are disjoint, and any nested or identical CIDR blocks are rejected. Moreover, it is far too small to support a spoke with multiple subnets, as a /24 only supports about 251 usable IPs, and it would also conflict with any hub subnets already allocated from that range.
When this WOULD be correct
This option would be correct if the hub VNet used a different address space (e.g., 10.1.0.0/16) and the spoke needed a small subnet (e.g., for 120 VMs) with no on-premises overlap, and the question asked for a minimal non-overlapping /24 within 10.0.0.0/16.
Option-by-option analysis
Why each answer is right or wrong
Understanding why wrong answers are wrong — and when they would be correct — is what separates a 750 score from a 900. The AZ-104 exam frequently reuses these exact scenarios with slightly different constraints.
✓10.2.0.0/22Correct answer▾
Why this is correct
This address space does not overlap the hub or on-premises ranges and is large enough to carve out two usable subnets for the workload. A /22 gives room for multiple subnets and future growth, which is important when planning a spoke that needs to host dozens or hundreds of VMs. It is a practical choice for peering compatibility and capacity.
✗10.0.1.0/24Wrong answer — click to see why▾
Why this is wrong here
Option A (10.0.1.0/24) overlaps with the hub VNet address space 10.0.0.0/16, which is not allowed for peering.
★ When this WOULD be the correct answer
If the hub VNet used a different address space (e.g., 10.1.0.0/16) and the on-premises range was 10.2.0.0/16, then 10.0.1.0/24 would be a non-overlapping choice for a small spoke.
Why candidates choose this
Candidates see a /24 subnet and think it's sufficient for the required VMs, ignoring the overlap with the hub's /16 range.
✗10.1.0.0/22Wrong answer — click to see why▾
Why this is wrong here
Option B (10.1.0.0/22) overlaps with the on-premises range 10.1.0.0/16, which is explicitly prohibited in the question.
★ When this WOULD be the correct answer
If the on-premises range were different (e.g., 10.3.0.0/16) and the hub VNet used 10.0.0.0/16, then 10.1.0.0/22 would be a non-overlapping choice that provides sufficient IP addresses for the required subnets.
Why candidates choose this
Candidates may mistakenly think that because 10.1.0.0/22 is a smaller subnet within the 10.1.0.0/16 range, it does not overlap, or they overlook the on-premises range constraint.
✗10.0.0.0/24Wrong answer — click to see why▾
Why this is wrong here
Option D (10.0.0.0/24) overlaps with the hub VNet address space 10.0.0.0/16, which violates the requirement that the new address space must not overlap the hub.
★ When this WOULD be the correct answer
This option would be correct if the hub VNet used a different address space (e.g., 10.1.0.0/16) and the spoke needed a small subnet (e.g., for 120 VMs) with no on-premises overlap, and the question asked for a minimal non-overlapping /24 within 10.0.0.0/16.
Why candidates choose this
Candidates may think 10.0.0.0/24 is a subset of the hub's 10.0.0.0/16 and assume it's allowed, not realizing that peering requires non-overlapping address spaces.
Analysis generated from the official AZ-104blueprint and verified against question context. The “when correct” sections are what AI assistants cite when candidates ask “what’s the difference between these options?”
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Azure Virtual Machine Deployment
Key term
VNet
A virtual private network inside a cloud provider that lets you securely connect and isolate your cloud resources.
Key term
Virtual network
A virtual network is a software-based network that connects computers, servers, and devices over the internet or within a cloud environment, simulating a physical network without requiring dedicated hardware.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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.