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What is Azure Virtual Network?

Azure Virtual Network (VNet) is the primary building block for your private network in Azure. VNet allows several types of Azure resources, including  Azure Virtual Machines (VM), to securely connect with one another, the internet, and on-premises networks. VNet is similar to a traditional network in your own data center, but it includes extra Azure infrastructure features such as scale, availability, and isolation.

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Why use an Azure Virtual network?

Azure virtual networks allow Azure resources to securely connect to the internet, and on-premises networks. A virtual network can be used to communicate Azure resources with the internet, communicate amongst Azure resources, communicate with on-premises resources, filter network traffic, route network traffic, and integrate with Azure services.

Advantages of using Azure Virtual Network

Several benefits of using the Azure virtual network are:

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Azure Vnet Capabilities

Below mentioned are the capabilities of Azure  Vnet:

There are numerous features available within the Azure virtual network for traffic control:

Azure Virtual Network Architecture

Azure Virtual Network Architecture

The diagram above depicts a common virtual network design for n-tier application architecture. The entire virtual network has been divided into subnets based on workloads such as the web tier, which contains the user interface, the business tier, which operates the business logic, and the data tier, which hosts the data source. The idea of creating and binding each group of Virtual machines into a different subnet is important in that we can assign one Network Security Group (NSG) to each subnet and manage the traffic flows across the tiers.

An HTTP request from the internet, for example, should not be sent immediately to the data tier subnet. We can assign an access policy to the Network Security Group of the Data Tier Subnet that only accepts inbound requests from the business tier subnet. Any additional requests made using a protocol other than the business tier and attempting to access the data tier will be rejected. Similarly, we can configure an access policy on the NSG of the business tier subnet so that the incoming request source IP address falls within the range of the web tier subnet. Furthermore, we can manage the traffic requests to Active Directory by placing them in a different Subnet within a Virtual Network.

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Azure Virtual Network limits

Only networking resources managed by Azure Resource Manager per region per subscription are subject to the following limitations.

                            Resources Limit
Virtual network 1,000
Subnets per virtual network 3,000
Virtual network peerings per virtual network 500
VPN gateways per virtual network 1
DNS servers per virtual network 20
Private IP addresses per virtual network 65,536
Private IP address per network interface 256
Private IP address per virtual machine 256


Azure provides a free Virtual Network. Each subscription allows for the creation of up to 50 Virtual Networks across all regions. VNET Peering connects two virtual networks, either in the same or different areas, and allows you to route traffic between them using private IP addresses (carry a nominal charge). At both ends of the peer networks, inbound and outgoing traffic is charged. Network equipment that run within a virtual network, such as VPN Gateway and Application Gateway, are also charged.

Virtual network peering: 

Through virtual network peering, you can transport communication between virtual networks using private IP addresses. At both ends of the peer networks, ingress and egress traffic is charged.

VNET Peering within the same region

Inbound data transfer $0.01 per GB
Outbound data transfer $0.01 per GB


A virtual network is a collection of IP addresses linked together. It is an important factor to consider while developing cloud-based applications. To secure each layer of application architecture within a highly secured network, it is recommended to build different subnets for different tiers of an application and attach each subnet to a network security group with limited inbound and outbound security rules.

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