Quick Answer
The answer is VNet peering, which is the correct choice because it establishes direct, private connectivity between two virtual networks in the same Azure region using the Microsoft backbone, without requiring a VPN gateway, public IPs, or internet transit. This configuration allows resources in VNet-Hub and VNet-Spoke1 to communicate privately and efficiently, leveraging Azure’s high-bandwidth, low-latency infrastructure. On the AZ-104 exam, this concept tests your understanding of network connectivity options, often appearing in scenarios that contrast VNet peering with VPN gateways or service endpoints—a common trap is assuming a VPN gateway is needed for cross-VNet traffic, when in fact peering handles it natively. Remember the key distinction: VNet peering is for same-region or global private links, while VPN gateways are for site-to-site or point-to-site encrypted tunnels. A helpful memory tip is “Peering is private, no gateway needed”—if the question emphasizes private, backbone-only communication without a VPN, VNet peering is almost always the answer.
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?
VNet peering
This is the direct and simplest solution for private VNet connectivity in Azure.
A site-to-site VPN
Why wrong: A VPN is unnecessary for two Azure VNets in this scenario.
A public load balancer
Why wrong: A public load balancer does not provide VNet-to-VNet connectivity.
An NSG outbound deny rule
Why wrong: An NSG rule would restrict traffic, not enable it.
Answer choices
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
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.
A public load balancer
Why it's wrong here
A public load balancer does not provide VNet-to-VNet connectivity.
An NSG outbound deny rule
Why it's wrong here
An NSG rule would restrict traffic, not enable it.
Common exam traps
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
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.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
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
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Implement and Manage Virtual Networking — study guide chapter
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FAQ
Implement and Manage Virtual Networking — This question tests Implement and Manage Virtual Networking — Read the scenario before looking for a memorised answer..
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.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
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 →
Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. VNet-Hub and VNet-Spoke1 are in the same region and subscription. Resources in the two VNets must communicate over the Microsoft backbone without using a VPN gateway. What should you configure?
mediumWhy A: VNet peering enables direct connectivity between two virtual networks in the same region and subscription over the Microsoft backbone, without requiring a VPN gateway or public internet. This is the correct solution because it provides low-latency, private communication using the Azure infrastructure, and it supports resources in both VNets to communicate as if they were on the same network.
Last reviewed: Jun 11, 2026
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