This AZ-500 practice question tests your understanding of secure 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.
You are designing network security for a three-tier application. You need to isolate each tier (web, application, data) and control traffic between them. Which TWO Azure services should you use to achieve this? (Choose two.)
Network Security Groups (NSGs)
NSGs filter traffic between subnets or NICs.
VNet peering
Why wrong: VNet peering is for connecting separate VNets, not for isolating tiers within a VNet.
Azure Policy
Why wrong: Azure Policy does not control traffic flow.
Azure Firewall
Why wrong: Azure Firewall is not required for basic tier isolation; NSGs are sufficient.
Application Security Groups (ASGs)
ASGs simplify grouping VMs and applying NSG rules.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Network Security Groups (NSGs)
Options A and C are correct. NSGs provide traffic filtering at the subnet or NIC level. ASGs allow grouping of VMs and referencing them in NSG rules. Option B is wrong because Azure Firewall is a centralized firewall, but for simple tier isolation, NSGs and ASGs suffice. Option D is wrong because VNet peering connects VNets, not tiers within a VNet. Option E is wrong because Azure Policy does not enforce network traffic rules.
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
For each option: why learners choose it and why it is or isn't the right answer here.
Network Security Groups (NSGs)
Why this is correct
NSGs filter traffic between subnets or NICs.
Related concept
CIDR notation defines the prefix length.
VNet peering
Why it's wrong here
VNet peering is for connecting separate VNets, not for isolating tiers within a VNet.
Azure Policy
Why it's wrong here
Azure Policy does not control traffic flow.
Azure Firewall
Why it's wrong here
Azure Firewall is not required for basic tier isolation; NSGs are sufficient.
Application Security Groups (ASGs)
Why this is correct
ASGs simplify grouping VMs and applying NSG rules.
Related concept
CIDR notation defines the prefix length.
Common exam traps
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
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.
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
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.
What to study next
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.
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FAQ
Secure networking — This question tests Secure networking — CIDR notation defines the prefix length..
The correct answer is: Network Security Groups (NSGs) — Options A and C are correct. NSGs provide traffic filtering at the subnet or NIC level. ASGs allow grouping of VMs and referencing them in NSG rules. Option B is wrong because Azure Firewall is a centralized firewall, but for simple tier isolation, NSGs and ASGs suffice. Option D is wrong because VNet peering connects VNets, not tiers within a VNet. Option E is wrong because Azure Policy does not enforce network traffic rules.
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.
CIDR notation defines the prefix length.
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Last reviewed: Jun 20, 2026
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