The answer is Azure VPN Gateway. This component is the correct choice because it establishes an encrypted site-to-site IPsec/IKE tunnel between an on-premises network and an Azure virtual network, enabling secure connectivity to private IP addresses in Azure without requiring any public IPs on the VMs. The gateway routes traffic through its own public-facing endpoint on the Azure side, while the on-premises edge device initiates the tunnel, keeping all Azure VMs isolated from the internet. On the AZ-104 exam, this scenario tests your understanding of hybrid networking components and the distinction between VPN Gateway, ExpressRoute, and Azure Bastion—a common trap is choosing a public IP on the VM or a point-to-site VPN, but the requirement for a site-to-site tunnel with an existing edge device points directly to VPN Gateway. Memory tip: think “Gateway to Gateway” for site-to-site—no public IPs on VMs means the gateway handles all the public-facing work.
AZ-104 Implement and Manage Virtual Networking Practice Question
This AZ-104 practice question tests your understanding of implement and manage virtual networking. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. 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 on-premises datacenter must reach private IP addresses in Azure over an encrypted site-to-site tunnel. The Azure VMs must not have public IP addresses, and the connection should use the company's existing edge device. Which Azure component should be deployed?
Why wrong: Bastion supports browser-based admin access, not site-to-site network tunnels from on-premises.
B
Azure VPN Gateway
VPN Gateway terminates the encrypted site-to-site tunnel and enables private connectivity from on-premises to Azure VNets. It works with the on-premises edge device and allows access to Azure private IPs without assigning public IPs to the target VMs.
C
Azure Route Server
Why wrong: Route Server exchanges routing information but does not itself create the encrypted tunnel.
D
A network security group with inbound allow rules
Why wrong: An NSG controls traffic filtering, but it cannot establish encrypted hybrid connectivity.
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Azure VPN Gateway
Azure VPNGateway is the correct component because it provides an encrypted site-to-site IPsec/IKE tunnel between an on-premises network and Azure virtual networks. It supports policy-based or route-based VPNs, works with existing edge devices, and allows Azure VMs to remain without public IP addresses by routing traffic through the gateway's private IP space.
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.
✗
Azure Bastion
Why it's wrong here
Bastion supports browser-based admin access, not site-to-site network tunnels from on-premises.
✓
Azure VPN Gateway
Why this is correct
VPNGateway terminates the encrypted site-to-site tunnel and enables private connectivity from on-premises to Azure VNets. It works with the on-premises edge device and allows access to Azure private IPs without assigning public IPs to the target VMs.
Related concept
Read the scenario before looking for a memorised answer.
✗
Azure Route Server
Why it's wrong here
Route Server exchanges routing information but does not itself create the encrypted tunnel.
✗
A network security group with inbound allow rules
Why it's wrong here
An NSG controls traffic filtering, but it cannot establish encrypted hybrid connectivity.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is confusing Azure Bastion (a secure access service) with a VPNgateway, because both involve 'secure connections' to Azure, but Bastion does not extend the on-premises network or support site-to-site tunneling.
Detailed technical explanation
How to think about this question
Azure VPNGateway uses IKEv1 or IKEv2 with IPsec ESP tunnel mode, supporting pre-shared key or certificate-based authentication. It can be deployed in active-active mode for high availability, and when combined with BGP, it enables dynamic routing and failover. A real-world scenario is connecting a branch office with a Cisco ASA or Meraki MX to Azure over a site-to-site VPN, where the gateway's public IP is used for the tunnel endpoint but VMs remain private.
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
An e-commerce site experiences heavy traffic on Black Friday and near-zero traffic during off-peak weeks. Rather than provisioning permanent large VMs, the team uses auto-scaling groups that add capacity automatically under load and reduce it overnight. Questions like this test whether you understand elasticity, availability zones, and cloud compute scaling patterns.
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: Azure VPN Gateway — Azure VPN Gateway is the correct component because it provides an encrypted site-to-site IPsec/IKE tunnel between an on-premises network and Azure virtual networks. It supports policy-based or route-based VPNs, works with existing edge devices, and allows Azure VMs to remain without public IP addresses by routing traffic through the gateway's private IP space.
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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