A company has two Azure virtual networks (VNet-A and VNet-B) connected via VNet peering. They need to ensure that all traffic between the two VNets is encrypted using IPsec and that no traffic can bypass the encryption. The security team has enabled the 'Use remote virtual network gateways' setting on the peering. However, traffic is still flowing unencrypted. What additional configuration is required to enforce encryption for all traffic between the VNets?
Answer choices
Why each option matters
Good practice is not just finding the correct option. The wrong answers often show the exact trap the exam wants you to fall into.
Best answer
Enable 'Azure virtual network encryption' on both VNets and configure the encryption policy.
Azure virtual network encryption (currently in preview) encrypts all traffic between VNets using IPsec. Enabling it on both sides ensures traffic is encrypted.
Distractor review
Deploy an Azure VPN Gateway in each VNet and create a site-to-site VPN connection between them.
This would create encrypted tunnels, but it introduces additional cost and complexity. Also, the connection would be through the gateways, not directly between VNets. It may not cover all traffic if there are multiple spoke VNets.
Distractor review
Configure a network security group (NSG) rule on each subnet to deny traffic that is not IPsec encapsulated.
NSGs work at layer 3/4 and cannot inspect IPsec encapsulation. This is not feasible.
Distractor review
Enable 'Allow gateway transit' on VNet-A and 'Use remote virtual network gateways' on VNet-B, and then create a VPN gateway in VNet-A.
This configuration enables transitive routing via a gateway, but does not encrypt the traffic between the VNets over peering. The gateway would only encrypt traffic going through it, but traffic between the VNets may still use the peering direct path unencrypted.
Common exam trap
Common exam trap: usable hosts are not the same as total addresses
Subnetting questions often tempt you into counting all addresses. In normal IPv4 subnets, the network and broadcast addresses are not usable host addresses.
Technical deep dive
How to think about this question
Subnetting questions test whether you can identify the network, broadcast address, usable range, mask and correct subnet. Slow down enough to calculate the block size correctly.
KKey Concepts to Remember
- CIDR notation defines the prefix length.
- Block size helps identify subnet boundaries.
- Network and broadcast addresses are not usable hosts in normal IPv4 subnets.
- The required host count determines the smallest suitable subnet.
TExam Day Tips
- Write the block size before choosing the subnet.
- Check whether the question asks for hosts, subnets or a specific address range.
- Do not confuse /24, /25, /26 and /27 host counts.
Related practice questions
Related AZ-500 practice-question pages
Use these pages to review the topic behind this question. This is how one missed question becomes focused revision.
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Keep practising from the same exam bank, or move into a focused topic page if this question exposed a weak area.
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FAQ
Questions learners often ask
What does this AZ-500 question test?
CIDR notation defines the prefix length.
What is the correct answer to this question?
The correct answer is: Enable 'Azure virtual network encryption' on both VNets and configure the encryption policy. — VNet peering itself does not provide encryption. To encrypt traffic over VNet peering, you can use VPN Gateway in the hub with site-to-site VPN or use NVAs. However, Azure recently introduced 'Azure virtual network encryption' (preview) which can encrypt traffic between two VNets using IPsec. The 'Use remote virtual network gateways' option is for transitive routing, not encryption. To enforce encryption, you need to configure the 'Azure virtual network encryption' feature on both VNets. Alternatively, you could configure IPsec policies via an NVA. But the question states 'using IPsec' and 'no traffic can bypass the encryption', implying a built-in solution. The 'Azure virtual network encryption' ensures all traffic is encrypted.
What should I do if I get this AZ-500 question wrong?
Then try more questions from the same exam bank and focus on understanding why the wrong options are tempting.
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