The answer is VNet peering between the two virtual networks. This configuration is correct because VNet peering enables direct private IP communication between Azure virtual networks using the Microsoft backbone infrastructure, bypassing the need for a gateway, VPN, or any public internet exposure. When two non-overlapping VNets reside in the same Azure region, VNet peering provides low-latency, high-bandwidth connectivity that meets the exact requirement for private IP traffic without additional transit appliances. On the AZ-104 exam, this scenario tests your understanding of when to use peering versus gateway-based solutions like VPN or ExpressRoute—a common trap is assuming a gateway is always required for cross-VNet communication. Remember that VNet peering is the only native Azure service that allows direct private IP routing between VNets in the same region without a gateway. A helpful memory tip: think of peering as a private bridge between two networks, not a tollbooth—no gateway needed.
AZ-104 Implement and Manage Virtual Networking Practice Question
This AZ-104 practice question tests your understanding of implement and manage virtual networking. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
An administrator needs two non-overlapping VNets in the same region to communicate directly over private IP addresses without deploying a gateway. What should be configured?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
VNet peering between the two virtual networks.
VNet peering enables direct connectivity between two Azure virtual networks using private IP addresses across the Microsoft backbone, without requiring a gateway or public internet. It supports non-overlapping address spaces in the same region and provides low-latency, high-bandwidth communication. This matches the requirement exactly.
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.
✓
VNet peering between the two virtual networks.
Why this is correct
VNet peering provides private, low-latency communication between virtual networks when their address spaces do not overlap.
Related concept
Read the scenario before looking for a memorised answer.
✗
A site-to-site VPN gateway connection.
Why it's wrong here
VPN gateways are used for encrypted network connections, but they are not required for direct VNet-to-VNet communication.
✗
A service endpoint on both subnets.
Why it's wrong here
Service endpoints extend subnet identity to a service, but they do not connect two VNets together.
✗
A route table with default routes to each VNet.
Why it's wrong here
Route tables can influence next hops, but they do not create the private connectivity needed between VNets.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates confuse VNet peering with VPN gateways or service endpoints, assuming a gateway is always required for cross-VNet communication or that service endpoints can connect VNets, when in fact peering is the direct, gateway-free solution for private IP connectivity.
Detailed technical explanation
How to think about this question
VNet peering uses the Azure backbone to route traffic between VNets with no intermediate hops, leveraging the underlying SDN fabric. Traffic stays within the Azure network and is subject to regional peering bandwidth limits (up to 10 Gbps per peering link). A common real-world scenario is connecting a hub VNet (with shared services) to spoke VNets for microservices communication, avoiding gateway bottlenecks.
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 healthcare organisation deploys an application with a public-facing web tier and a private database tier. The database subnet has no public IP and only accepts connections from the web tier's security group. Questions like this test whether you can design cloud network isolation using VNets/VPCs, subnets, and security group rules.
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: VNet peering between the two virtual networks. — VNet peering enables direct connectivity between two Azure virtual networks using private IP addresses across the Microsoft backbone, without requiring a gateway or public internet. It supports non-overlapping address spaces in the same region and provides low-latency, high-bandwidth communication. This matches the requirement exactly.
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.
What is the key concept behind this question?
Read the scenario before looking for a memorised answer.
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Question Discussion
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