- A
Add an NSG that allows traffic between the two VNets.
Why wrong: NSGs filter traffic after connectivity exists, but they do not resolve overlapping address spaces.
- B
Reconfigure VNet-Shared to use a non-overlapping address range, then recreate its subnets and migrate workloads.
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.
- C
Rename VNet-Shared so Azure treats it as a different network.
Why wrong: VNet names are only labels and have no effect on address-space validation or peering rules.
- D
Enable gateway transit on both VNets so Azure can route around the overlap.
Why wrong: Gateway transit helps share an existing gateway, but it does not allow peering networks with overlapping IP ranges.
AZ-104 Implement and Manage Virtual Networking Practice Question
This AZ-104 practice question tests your understanding of implement and manage virtual networking. The scenario asks you to isolate a root cause — eliminate options that address a different problem before choosing. 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 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?
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.
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.
- ✗
Add an NSG that allows traffic between the two VNets.
Why it's wrong here
NSGs filter traffic after connectivity exists, but they do not resolve overlapping address spaces.
- ✓
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.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Rename VNet-Shared so Azure treats it as a different network.
Why it's wrong here
VNet names are only labels and have no effect on address-space validation or peering rules.
- ✗
Enable gateway transit on both VNets so Azure can route around the overlap.
Why it's wrong here
Gateway transit helps share an existing gateway, but it does not allow peering networks with overlapping IP ranges.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may 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.
Detailed technical explanation
How to think about this question
Azure VNet peering relies on the underlying Azure backbone to route traffic between VNets using the address prefixes defined in each VNet's address space. When two VNets have overlapping CIDR blocks, Azure cannot create the necessary routing entries because it cannot distinguish which VNet owns which IP range. The only solution is to change the address space of one VNet, which requires deleting all subnets (and their resources) before modifying the address space, then recreating subnets and migrating workloads—a process that can be automated with tools like Azure Resource Mover or custom scripts.
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.
What to study next
Got this wrong? Here's your next step.
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FAQ
Questions learners often ask
What does this AZ-104 question test?
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: 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.
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.
About these practice questions
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Last reviewed: Jun 11, 2026
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.
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