AZ-104 Implement and Manage Virtual Networking Practice Question
A company needs to peer VNet-Prod, which uses 10.30.0.0/16, with VNet-Shared, which uses 10.30.64.0/18. The peering creation fails with an address-space overlap error. The team can renumber the shared environment, but they do not want to change any addresses in VNet-Prod. What should the administrator do before retrying the peering?
⚠ Common exam trap
Watch out — candidates often think gateway transit or NSGs can bypass address space overlap, but Azure strictly enforces non-overlapping address spaces for VNet peering, and no network feature can override this fundamental routing requirement.
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
✓
Reconfigure VNet-Shared to use a non-overlapping address range, then recreate its subnets and migrate workloads.
VNet peering requires that the address spaces of the two VNets do not overlap. VNet-Prod uses 10.30.0.0/16, which includes the range 10.30.64.0/18 used by VNet-Shared, causing the overlap error. The only way to resolve this without changing VNet-Prod is to reconfigure VNet-Shared to use a non-overlapping address range, which involves deleting and recreating its subnets and migrating workloads, as stated in option B.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Add an NSG that allows traffic between the two VNets.
Why it's wrong here
Network security groups (NSGs) are stateful packet filters applied to subnets or NICs, but they only operate on traffic that Azure can already route between peered networks. VNet peering creation first validates that the configured address spaces do not overlap; with both VNets using 10.30.0.0/16, the peering cannot be established at all. Because no peering link exists, the NSG would never see inter-VNet traffic, and it cannot change the overlapping address space in any way.
When this WOULD be correct
An administrator needs to restrict traffic between two peered VNets to specific ports or IPs; adding an NSG on the subnet or NIC would enforce that security policy.
- ✓
Reconfigure VNet-Shared to use a non-overlapping address range, then recreate its subnets and migrate workloads.
Why this is correct
Azure VNet peering requires the two address spaces to be unique and non-overlapping. If any prefix overlaps, the peering cannot be created. The correct fix is to renumber one VNet by introducing a different address range, rebuilding or moving subnets as needed, and then removing the conflicting range. This addresses the root cause instead of trying to work around it with security or routing settings.
- ✗
Rename VNet-Shared so Azure treats it as a different network.
Why it's wrong here
VNet names are Azure Resource Manager labels used for identification and management; they are not part of the network-layer routing decision. The peering validation compares the CIDR ranges (both 10.30.0.0/16), not the resource names, so renaming or recreating VNet-Shared with a different label leaves the identical overlapping address space in place. Because the conflict is purely one of IP prefixes, a name change cannot satisfy Azure's peering requirement and the peering will still be rejected.
When this WOULD be correct
If the question involved a naming conflict (e.g., two VNets with the same name in different resource groups) and the goal was to avoid confusion in Azure Portal, renaming one would resolve the conflict without affecting address spaces.
- ✗
Enable gateway transit on both VNets so Azure can route around the overlap.
Why it's wrong here
Gateway transit lets a peered VNet borrow an existing VPN gateway from a hub VNet, but it requires a successful VNet peering link and does not excuse overlapping address spaces. The peering validation checks the VNet address prefixes before any gateway or routing configuration is considered, so the overlap between the two 10.30.0.0/16 ranges causes the peering attempt to fail outright. Even if transit were somehow configured, Azure would have no unique destination route for the duplicated prefix, creating ambiguous routing rather than a workaround.
When this WOULD be correct
This option would be correct if the VNets had non-overlapping address spaces and the goal was to allow VNet-Shared to use a VPN gateway in VNet-Prod for connectivity to on-premises networks, with gateway transit enabled on VNet-Prod and use remote gateways on VNet-Shared.
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.
✓Reconfigure VNet-Shared to use a non-overlapping address range, then recreate its subnets and migrate workloads.Correct answer▾
Why this is correct
Azure VNet peering requires the two address spaces to be unique and non-overlapping. If any prefix overlaps, the peering cannot be created. The correct fix is to renumber one VNet by introducing a different address range, rebuilding or moving subnets as needed, and then removing the conflicting range. This addresses the root cause instead of trying to work around it with security or routing settings.
✗Add an NSG that allows traffic between the two VNets.Wrong answer — click to see why▾
Why this is wrong here
NSGs filter traffic but do not resolve overlapping IP address spaces; peering requires non-overlapping ranges to establish routing.
★ When this WOULD be the correct answer
An administrator needs to restrict traffic between two peered VNets to specific ports or IPs; adding an NSG on the subnet or NIC would enforce that security policy.
Why candidates choose this
Candidates may think NSGs can fix connectivity issues caused by overlapping addresses, confusing network security with address space design.
✗Rename VNet-Shared so Azure treats it as a different network.Wrong answer — click to see why▾
Why this is wrong here
Renaming a virtual network does not change its address space; Azure identifies VNets by their address ranges, not names, so the overlap error persists.
★ When this WOULD be the correct answer
If the question involved a naming conflict (e.g., two VNets with the same name in different resource groups) and the goal was to avoid confusion in Azure Portal, renaming one would resolve the conflict without affecting address spaces.
Why candidates choose this
Candidates may mistakenly think Azure uses the VNet name as a unique identifier for peering, similar to how DNS names resolve IP addresses, and that renaming would somehow bypass the overlap check.
✗Enable gateway transit on both VNets so Azure can route around the overlap.Wrong answer — click to see why▾
Why this is wrong here
Gateway transit does not resolve address space overlap; it only enables a VPN gateway in one VNet to route traffic to on-premises or other VNets via the peered VNet. Overlapping IP ranges prevent peering from being established at all.
★ When this WOULD be the correct answer
This option would be correct if the VNets had non-overlapping address spaces and the goal was to allow VNet-Shared to use a VPN gateway in VNet-Prod for connectivity to on-premises networks, with gateway transit enabled on VNet-Prod and use remote gateways on VNet-Shared.
Why candidates choose this
Candidates may think gateway transit can route around overlaps by using the gateway as a intermediary, but Azure VNet peering requires non-overlapping address spaces regardless of gateway configuration.
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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Related to this question
Learn chapter
Azure Virtual Networks and Subnets
Key term
VNet peering
VNet peering is a networking connection that links two virtual networks so they can communicate with each other as if they were a single network.
Key term
VNet
A virtual private network inside a cloud provider that lets you securely connect and isolate your cloud resources.
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JA
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.