- A
Deploy a virtual network gateway in a dedicated GatewaySubnet.
Azure VPN gateways must be deployed into the special GatewaySubnet within the VNet.
- B
Assign a public IP address to the Azure VPN gateway.
The gateway needs a public-facing endpoint so the on-premises device can establish the tunnel.
- C
Configure the on-premises VPN device with a public IP and supported IKE/IPsec settings.
The on-premises device must be reachable and must use compatible tunnel parameters.
- D
Create a private endpoint for the headquarters network.
Why wrong: Private endpoints are for PaaS service access, not for hybrid VPN tunnel establishment.
- E
Enable Microsoft peering on the virtual network gateway.
Why wrong: Microsoft peering is associated with ExpressRoute concepts, not standard site-to-site VPN gateways.
Quick Answer
The answer is the on-premises VPN device must have a public IP and support IKE/IPsec, along with a dedicated GatewaySubnet in Azure and a virtual network gateway. This is correct because a site-to-site VPN requires a routable public endpoint on the on-premises side to establish the encrypted tunnel, while the GatewaySubnet acts as the dedicated container for the Azure VPN gateway resources—without it, the gateway cannot be provisioned. On the AZ-104 exam, this question tests your understanding of classic VPN prerequisites, often appearing as a multi-select item where a common trap is forgetting that the GatewaySubnet must be named exactly "GatewaySubnet" (not "gateway-subnet" or any variation). A strong memory tip is to think "Public IP, IKE, GatewaySubnet"—these three form the backbone of any classic site-to-site connection, and Azure will reject a gateway deployment if the subnet name is off by even a single character.
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.
A company wants encrypted connectivity between its on-premises network and an Azure VNet. The organization has one edge VPN device at headquarters, and the Azure design must support a classic site-to-site tunnel rather than individual user VPN connections. Which three prerequisites are required? Select three.
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
Deploy a virtual network gateway in a dedicated GatewaySubnet.
A virtual network gateway must be deployed in a dedicated subnet called GatewaySubnet to host the VPN gateway resources. This subnet is required for the gateway to function and must be named exactly 'GatewaySubnet' to be recognized by Azure when creating a site-to-site VPN connection.
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.
- ✓
Deploy a virtual network gateway in a dedicated GatewaySubnet.
Why this is correct
Azure VPN gateways must be deployed into the special GatewaySubnet within the VNet.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Assign a public IP address to the Azure VPN gateway.
Why this is correct
The gateway needs a public-facing endpoint so the on-premises device can establish the tunnel.
Related concept
Read the scenario before looking for a memorised answer.
- ✓
Configure the on-premises VPN device with a public IP and supported IKE/IPsec settings.
Why this is correct
The on-premises device must be reachable and must use compatible tunnel parameters.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
Create a private endpoint for the headquarters network.
- ✗
Enable Microsoft peering on the virtual network gateway.
Why it's wrong here
Microsoft peering is associated with ExpressRoute concepts, not standard site-to-site VPN gateways.
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates may confuse private endpoints (used for PaaS services) or ExpressRoute peering with the prerequisites for a classic site-to-site VPN, which strictly requires a GatewaySubnet, a public IP on the gateway, and a compatible on-premises VPN device.
Detailed technical explanation
How to think about this question
A site-to-site VPN tunnel uses IPsec/IKE (Internet Key Exchange) to encrypt traffic between the on-premises VPN device and the Azure VPN gateway. The Azure VPN gateway must have a public IP address assigned to it so that the on-premises device can initiate the tunnel, and the on-premises device must also have a public IP and support matching IKE versions (IKEv1 or IKEv2) and IPsec parameters (such as encryption algorithms, integrity algorithms, and DH groups) to successfully negotiate the security association.
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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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: Deploy a virtual network gateway in a dedicated GatewaySubnet. — A virtual network gateway must be deployed in a dedicated subnet called GatewaySubnet to host the VPN gateway resources. This subnet is required for the gateway to function and must be named exactly 'GatewaySubnet' to be recognized by Azure when creating a site-to-site VPN connection.
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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