Connect Azure Subscriptions between 2 companies (tenants)

Question

Connect Azure Subscriptions between 2 companies (tenants)

MS Techie 2,751

We want to connect basically a VNet in one Azure Subscription , in tenant A for Company A with VNet in another Azure Subscription , in tenant B , for Company B

1) Now, if we do VNet peering across tenants , then that VNet peering will be done over Internet. Am i right ? i understand we will be able to communicate across Private IP address.... but that VNet peering will pass over internet ? (like in Site to SIte VPN , there is a tunnel created , but in this case, i suppose VNet peering will be done over internet , and i assume it will be slow .. Please CONFIRM this.
(like https://azure.microsoft.com/en-in/updates/cross-aad-vnet-peering/)

2) Can i use Site to Site VPN across Azure subscriptions in different tenants

3) Can we connect ExpressRoute circuits of one Azure Subscription to other , when in different tenants

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Answer 1

SaiKishor-MSFT 17,336

@MS Techie Thank you for reaching out to Microsoft Q&A. Answering your questions below:

Vnet peering uses Microsoft Backbone for connectivity, therefore, this is a high bandwidth, low latency connection.
You can also use a VNet-to-VNet VPN gateway connection for connecting virtual networks in different regions and from different subscriptions. Here are more details regarding the same.
1. You can also connect multiple subscriptions to your ER Circuit. Here are details regarding the same.

Hope this helps. Please let us know if you have any further questions and we will be glad to assist you further. Thank you!

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MS Techie 2,751 Reputation points

2021-10-27T02:51:20.003+00:00

Hi @SaiKishor-MSFT

1) What security options are available with cross tenant VNet peering ? Please answer
2) What data transfer speed/traffic speed options are available for cross tenant VNet peering ?
3) Is VNet Peering slow compared to Site to Site VPN ? Please answer

Please advise.
SaiKishor-MSFT 17,336 Reputation points

2021-10-27T11:48:16.807+00:00

@MS Techie

1) What security options are available with cross tenant VNet peering ? Please answer

When Azure traffic moves between datacenters (outside physical boundaries not controlled by Microsoft or on behalf of Microsoft), MACsec data-link layer encryption is utilized on the underlying network hardware. This is applicable to VNet peering traffic.

2) What data transfer speed/traffic speed options are available for cross tenant VNet peering

VNet peering, whether local or global, does not impose any bandwidth restrictions. Bandwidth is only limited by the VM or the compute resource.

3) Is VNet Peering slow compared to Site to Site VPN ?

VNet Peering provides a low latency, high bandwidth connection useful in scenarios such as cross-region data replication and database failover scenarios. Since traffic is completely private and remains on the Microsoft backbone, customers with strict data policies prefer to use VNet Peering as public internet is not involved. Since there is no gateway in the path, there are no extra hops, ensuring low latency connections.

VPN Gateways provide a limited bandwidth connection and is useful in scenarios where encryption is needed, but bandwidth restrictions are tolerable. In these scenarios, customers are also not as latency-sensitive.

Hope this helps. Please let me know if you have further questions/concerns and I will be glad to assist further. Thank you!
MS Techie 2,751 Reputation points

2021-10-28T06:54:18.587+00:00

thanks for the reply @SaiKishor-MSFT

Please share any links on the VNet Peering security options.

For cross tenant VNet peering across companies, Does VNet Peering go over internet ?
SaiKishor-MSFT 17,336 Reputation points

2021-10-28T10:40:53.42+00:00

@MS Techie Traffic over the peered connection is encrypted by default. What other security requirements do you have for this traffic?

Vnet peering traffic will always take the Microsoft backbone.
MS Techie 2,751 Reputation points

2021-11-04T17:56:24.647+00:00

Please share any link that talks about Security aspect of VNet peering
What is security in transit and in rest.
SaiKishor-MSFT 17,336 Reputation points

2021-11-04T18:36:11.427+00:00

@MS Techie Please check the below link-

Is VNet peering traffic encrypted?

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Connect Azure Subscriptions between 2 companies (tenants)

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