The correct answer is to deploy each tier in a separate subnet and use Network Security Groups (NSGs) to restrict traffic between those subnets. This configuration works because NSGs act as a built-in, stateful firewall that allows you to define granular inbound and outbound rules at the subnet or network interface level, while separate subnets provide the logical isolation needed to enforce those rules effectively. On the Microsoft Azure Security Engineer Associate AZ-500 exam, network segmentation using NSGs and subnets is a core concept for designing secure multi-tier applications, and the most common trap is assuming a single subnet with multiple NSGs is sufficient—it is not, because NSGs cannot isolate traffic within the same subnet. A key memory tip is "separate subnets, separate rules": think of each tier as its own security zone, with the NSG as the gatekeeper between them.
AZ-500 Secure networking Practice Question
This AZ-500 practice question tests your understanding of secure 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 are designing a network security solution for a multi-tier application. The web tier must be accessible from the internet, but the application and database tiers must be isolated. Which TWO configurations should you implement?
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Use network security groups (NSGs) on each subnet
Option A is correct because NSGs can be used to restrict traffic between tiers. Option D is correct because isolating VMs in separate subnets allows granular NSG rules. Option B is wrong because a single subnet would not isolate tiers. Option C is wrong because VNet peering is for connecting VNets, not isolating tiers. Option E is wrong because a single VNet is fine, but subnets should be used.
Key principle: Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
Peering is for connecting separate VNets, not for isolation within a VNet.
✗
Place all VMs in the same subnet
Why it's wrong here
Same subnet allows unrestricted traffic.
Common exam traps
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.
Detailed technical explanation
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.
Key takeaway
Count usable hosts — not total addresses — and remember that the network and broadcast addresses are not available to hosts in standard IPv4 subnets.
Real-world example
How this comes up in practice
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
Related glossary terms
Concepts from this question explained
These glossary pages explain the core terms tested in this AZ-500 question in full detail.
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related AZ-500 subnetting questions on CIDR, address ranges, and subnet selection.
Secure networking — This question tests Secure networking — CIDR notation defines the prefix length..
What is the correct answer to this question?
The correct answer is: Use network security groups (NSGs) on each subnet — Option A is correct because NSGs can be used to restrict traffic between tiers. Option D is correct because isolating VMs in separate subnets allows granular NSG rules. Option B is wrong because a single subnet would not isolate tiers. Option C is wrong because VNet peering is for connecting VNets, not isolating tiers. Option E is wrong because a single VNet is fine, but subnets should be used.
What should I do if I get this AZ-500 question wrong?
Review block sizes, usable host formulas (2^n − 2), and how to find network and broadcast addresses for /24 through /30. Then practise related AZ-500 subnetting questions on CIDR, address ranges, and subnet selection.
What is the key concept behind this question?
CIDR notation defines the prefix length.
About these practice questions
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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. You are designing a network security strategy for a multi-tier application. The web tier must be accessible from the internet, but the application and database tiers must only be accessible from the web tier. Which Azure solution should you use to isolate the tiers?
medium
A.Azure DDoS Protection
B.Azure Firewall with application rules
✓ C.Network security groups (NSGs) on each subnet
D.Azure Private Link
Why C: Network security groups (NSGs) applied to subnets can control traffic between tiers by allowing only inbound traffic from the web tier subnet to the application tier subnet, and similarly between app and DB tiers. This provides network segmentation.
Variation 2. You are designing a secure network for a three-tier application. The web tier must be accessible from the internet on port 443. The application tier should only be reachable from the web tier. The database tier should only be reachable from the application tier. Which Azure service should you use to enforce these restrictions?
easy
A.Azure VPN Gateway.
✓ B.Network security groups (NSGs) on each subnet.
C.Azure Front Door.
D.Azure Firewall in the hub.
Why B: Option A is correct because NSGs can be applied to subnets or NICs to control inbound/outbound traffic. Option B is wrong because Azure Firewall is a managed network security service typically used for perimeter traffic. Option C is wrong because a VPN gateway is for site-to-site connectivity. Option D is wrong because Azure Front Door is a global load balancer.
Last reviewed: Jun 20, 2026
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This AZ-500 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-500 exam.
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