- A
VNet peering
This is the direct and simplest solution for private VNet connectivity in Azure.
- B
A site-to-site VPN
Why wrong: A VPN is unnecessary for two Azure VNets in this scenario.
- C
A public load balancer
Why wrong: A public load balancer does not provide VNet-to-VNet connectivity.
- D
An NSG outbound deny rule
Why wrong: An NSG rule would restrict traffic, not enable it.
Question 1,115 of 1,170
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 have two virtual networks named VNet-Hub and VNet-Spoke1 in the same Azure region. Resources in the two VNets must communicate privately over the Microsoft backbone without using a VPN gateway. What should you configure?
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
✓
VNet peering
VNet peering enables direct, private connectivity between two virtual networks in the same Azure region using the Microsoft backbone infrastructure. It does not require a VPN gateway, public IP addresses, or any internet transit, making it the correct choice for private communication between VNet-Hub and VNet-Spoke1.
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.
- ✓
VNet peering
Why this is correct
This is the direct and simplest solution for private VNet connectivity in Azure.
Related concept
Read the scenario before looking for a memorised answer.
- ✗
A site-to-site VPN
Why it's wrong here
A VPN is unnecessary for two Azure VNets in this scenario.
When this WOULD be correct
A site-to-site VPN would be correct if the question required connecting an on-premises network to Azure VNets over the internet with encrypted traffic, or connecting VNets in different Azure regions where VNet peering is not supported or when cross-region connectivity must be encrypted.
- ✗
A public load balancer
Why it's wrong here
A public load balancer does not provide VNet-to-VNet connectivity.
When this WOULD be correct
You need to distribute incoming internet traffic across multiple virtual machines in a backend pool for high availability and scalability. A public load balancer would be the correct choice.
- ✗
An NSG outbound deny rule
Why it's wrong here
An NSG rule would restrict traffic, not enable it.
When this WOULD be correct
You need to block all outbound traffic from a subnet to the internet while allowing traffic to a specific service via service tags. An NSG outbound deny rule with a higher priority deny-all rule and an allow rule for the service tag would be correct.
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.
✓VNet peeringCorrect answer▾
Why this is correct
This is the direct and simplest solution for private VNet connectivity in Azure.
✗A site-to-site VPNWrong answer — click to see why▾
Why this is wrong here
A site-to-site VPN requires a VPN gateway and uses encrypted tunnels over the public internet, not the Microsoft backbone. The question specifies private communication over the Microsoft backbone without a VPN gateway, so this option does not meet the requirements.
★ When this WOULD be the correct answer
A site-to-site VPN would be correct if the question required connecting an on-premises network to Azure VNets over the internet with encrypted traffic, or connecting VNets in different Azure regions where VNet peering is not supported or when cross-region connectivity must be encrypted.
Why candidates choose this
Candidates may think a VPN is the only way to connect VNets privately, not realizing that VNet peering provides private connectivity over the Microsoft backbone without a VPN gateway.
✗A public load balancerWrong answer — click to see why▾
Why this is wrong here
A public load balancer distributes incoming internet traffic to backend resources and does not enable private communication between virtual networks over the Microsoft backbone.
★ When this WOULD be the correct answer
You need to distribute incoming internet traffic across multiple virtual machines in a backend pool for high availability and scalability. A public load balancer would be the correct choice.
Why candidates choose this
Candidates may mistakenly think a load balancer can route traffic between VNets because it handles network traffic, but it is designed for load balancing, not VNet-to-VNet connectivity.
✗An NSG outbound deny ruleWrong answer — click to see why▾
Why this is wrong here
An NSG outbound deny rule blocks traffic but does not enable private connectivity between VNets; it cannot establish communication over the Microsoft backbone.
★ When this WOULD be the correct answer
You need to block all outbound traffic from a subnet to the internet while allowing traffic to a specific service via service tags. An NSG outbound deny rule with a higher priority deny-all rule and an allow rule for the service tag would be correct.
Why candidates choose this
Candidates may think that controlling outbound traffic with NSG rules is sufficient to enable private communication, misunderstanding that NSGs only filter traffic and do not create network paths.
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?”
Common exam traps
Common exam trap: answer the scenario, not the keyword
The trap here is that candidates often confuse VNet peering with VPN gateway-based solutions, assuming a VPN is required for private connectivity, but VNet peering directly meets the requirement without any gateway or public internet exposure.
Trap categories for this question
Scenario analysis trap
A VPN is unnecessary for two Azure VNets in this scenario.
Detailed technical explanation
How to think about this question
VNet peering uses the Azure backbone to route traffic between VNets with low latency and high bandwidth, and it supports transitive routing only when combined with a hub VNet and route tables (e.g., via a network virtual appliance). In the same region, VNet peering incurs no egress charges for data transfer, unlike global peering. The peering connection is established at the Azure fabric layer, leveraging the underlying SDN (Software-Defined Networking) stack to update route tables dynamically.
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: VNet peering — VNet peering enables direct, private connectivity between two virtual networks in the same Azure region using the Microsoft backbone infrastructure. It does not require a VPN gateway, public IP addresses, or any internet transit, making it the correct choice for private communication between VNet-Hub and VNet-Spoke1.
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
Courseiva creates original exam-style practice questions with explanations and wrong-answer analysis. It does not publish real exam questions, exam dumps, or protected exam content. Learn why practice questions differ from exam dumps →
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Last reviewed: Jun 11, 2026
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