The answer is virtual network peering, which is the correct choice because it establishes direct, private connectivity between two virtual networks in the same region using only private IP addresses over the Microsoft backbone, with no internet transit or VPN gateway required. This configuration allows resources in VNet-Hub and VNet-Spoke to communicate privately and efficiently, as peered traffic stays entirely within Azure’s network. On the AZ-104 exam, this scenario tests your understanding of when to use peering versus gateway transit or VPN connections—a common trap is assuming you need a VPN gateway for cross-VNet communication, but for same-region VNets, standard peering is both simpler and more performant. Remember the key distinction: peering is for private, same-region connections, while VPN gateways are for cross-premises or cross-region scenarios. A helpful memory tip is “peer for private, same-region speed; gateways for crossing the divide.”
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.
You need to connect VNet-Hub and VNet-Spoke so that resources in both virtual networks can communicate privately over the Microsoft backbone. Both virtual networks are in the same region. What should you configure?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Virtual network peering
Virtual network peering (A) is the correct solution because it enables direct, private connectivity between two virtual networks over the Microsoft backbone infrastructure. Since both VNets are in the same region, you can use standard VNet peering, which routes traffic between the peered networks using only private IP addresses, with no internet transit or gateway required. This meets the requirement for private communication without any additional VPN or gateway overhead.
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.
✓
Virtual network peering
Why this is correct
VNet peering is the correct solution for private, low-latency communication between Azure VNets.
Related concept
Read the scenario before looking for a memorised answer.
✗
A site-to-site VPN
Why it's wrong here
A site-to-site VPN is typically used to connect on-premises networks to Azure.
✗
A network security group
Why it's wrong here
An NSG filters traffic but does not create connectivity between VNets.
✗
An Azure Policy assignment
Why it's wrong here
Azure Policy governs configuration standards, not network connectivity.
Common exam traps
Common exam trap: answer the scenario, not the keyword
Microsoft often tests the misconception that a site-to-site VPN is required for private connectivity between VNets, but VNet peering is the native, simpler solution for same-region private communication over the Microsoft backbone.
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 Microsoft network infrastructure for low-latency, high-bandwidth connectivity. When you peer two VNets, Azure updates the routing tables of both VNets to include the address spaces of the peered VNet, enabling direct communication without any gateway. A subtle behavior is that you must enable 'Allow forwarded traffic' if you need to route traffic through a third VNet (e.g., a hub-and-spoke topology with a network virtual appliance), and you can also use 'Use remote gateways' to allow a spoke VNet to use the hub's VPN/ExpressRoute gateway.
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: Virtual network peering — Virtual network peering (A) is the correct solution because it enables direct, private connectivity between two virtual networks over the Microsoft backbone infrastructure. Since both VNets are in the same region, you can use standard VNet peering, which routes traffic between the peered networks using only private IP addresses, with no internet transit or gateway required. This meets the requirement for private communication without any additional VPN or gateway overhead.
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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