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What is Azure Virtual Network(VNet) and how does it work?

Leshyatha Karuturi 80 Reputation points
2026-06-10T09:58:15.29+00:00

I'm new to Azure and preparing for AZ-900. Can someone explain Virtual Network in simple terms?

How is it different from normal internet? Please give a real world example like house/apartment roads.

Thanks!

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AI answer

2026-06-10T09:58:40.1+00:00

Azure Virtual Network (VNet) is a private network in the Azure cloud that is dedicated to a subscription. It lets Azure resources (like virtual machines) securely communicate with each other, with the internet, and with on-premises networks.

In simple terms:

  • A VNet is a logical, private network inside Azure.
  • It is isolated from other customers’ networks.
  • It uses IP address ranges and subnets, similar to a traditional datacenter network.

How it works (high level):

  1. A VNet is created with an IP address range (CIDR block), for example 10.0.0.0/16.
  2. That range is split into subnets (for example 10.0.1.0/24 for web servers, 10.0.2.0/24 for databases).
  3. Azure resources (VMs, AKS nodes, etc.) get IP addresses from these subnets and can talk to each other privately inside the VNet.
  4. The VNet can be:
    • Connected to the internet (for example via public IPs, NAT gateway, or load balancer).
    • Connected to on-premises networks using VPN or ExpressRoute.
    • Peered with other VNets so resources in different VNets can communicate.

House/apartment road analogy:

  • Think of Azure as a big city.
  • A VNet is like a gated community or private neighborhood inside that city:
    • It has its own internal roads and house numbers (IP addresses).
    • Only residents and allowed visitors can move around inside.
  • Subnets are like streets inside that gated community:
    • One street for houses (web servers), another for shops (databases), etc.
  • Virtual machines and other resources are like houses on those streets, each with its own address.
  • Network security groups are like security guards or gates controlling which cars/people (traffic/ports) can enter or leave certain streets.
  • VNet peering is like building a private road between two gated communities, so residents can visit each other without going through the public city roads.
  • VPN/ExpressRoute is like building a private tunnel or dedicated highway between an on-premises office and the Azure gated community.

How it’s different from “normal internet”:

  • Normal internet is a public network: anyone can try to talk to anyone, and security is added on top (firewalls, encryption).
  • A VNet is a private, isolated network:
    • Only resources inside the VNet (and explicitly connected networks) can communicate over it.
    • IP ranges are not advertised to the internet.
    • Security policies, routing, and DNS are under full control inside that private space.

For AZ-900, key points to remember:

  • VNet = private, isolated network in Azure.
  • Used to connect Azure resources to each other, the internet, and on-premises.
  • Supports subnets, peering, VPN, ExpressRoute, and security controls like network security groups.

References:

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