AZ-500 Microsoft Azure Security Technologies Exam

Compare and Configure VNet Peering and VPN Gateway Connectivity

Virtual Network (VNet) Peering and VPN Gateway are two primary ways to connect Azure networks. VNet Peering creates a direct connection between virtual networks using the Azure backbone, while VPN Gateway establishes encrypted tunnels over the internet. Both methods support cross-subscription and cross-region setups, but they differ in performance, cost, and security. Understanding these options is essential when you plan and implement Virtual Network peering or VPN gateway for your Azure environment.

VNet Peering offers low latency and high bandwidth by letting resources communicate as if they are on the same network. You can peer networks within the same region or across regions and subscriptions. After peering, IP addresses in one network can directly access resources in the other without extra hops. Keep in mind that peering is non-transitive and has limits on the number of peerings per network, so you need to plan your topology carefully.

VPN Gateway uses IPsec and IKE protocols to create site-to-site or point-to-site connections. It is ideal for linking on-premises networks to Azure or connecting remote clients securely. VPN Gateway supports BGP for dynamic routing and lets you apply custom route tables to direct traffic. You can also combine VPN Gateway with ExpressRoute for a hybrid approach that adds redundancy and predictable performance.

When deciding between VNet Peering and VPN Gateway, consider these factors:

• Topology: Flat Azure-only networks often use peering; on-premises links require VPN.
• Latency: Low-latency scenarios favor VNet Peering.
• Security: End-to-end encryption over the internet needs VPN Gateway.
• Bandwidth: High-throughput data flows perform better over peering.

No matter which method you choose, implement Network Security Groups (NSGs) to control inbound and outbound traffic. For peered networks, apply NSGs at the subnet or NIC level to enforce security rules. For VPN connections, keep your IPsec/IKE policies up to date and monitor tunnel health. These steps ensure your Azure network connectivity is both secure and optimized.

Conclusion

In this section, we explored two key Azure networking options: VNet Peering, which provides fast, direct connectivity within Azure, and VPN Gateway, which creates secure, encrypted tunnels to on-premises or remote networks. Each method has its own strengths in terms of latency, bandwidth, and encryption, making it crucial to match the right solution to your scenario.

We also reviewed the main decision factors—topology, latency, security, and bandwidth—and highlighted the role of BGP, custom routes, and NSGs in optimizing and protecting traffic. By understanding these concepts, you can confidently plan and implement Virtual Network peering or VPN gateway connections that meet your organization’s performance and security requirements.