Microsoft Azure Architect Technologies (AZ-300) Practice Exam 2026 - Free AZ-300 Exam Questions and Study Guide

One of the main components of VNet peering is the ability to facilitate private IP address communication between different virtual networks. When two virtual networks are peered, they can communicate with each other directly using their respective private IP addresses as if they were part of the same network. This enables resources in either virtual network to interact seamlessly without the need for routing traffic over the public internet or requiring a VPN or other gateways.

Private IP communication is essential in scenarios where applications or services deployed in different VNets need to work together securely and efficiently. This approach helps in minimizing latency and maximizing throughput while ensuring that traffic stays within Azure's backbone network.

While network security groups, route tables, and VPN gateways are important elements of Azure networking, their roles differ from the core functionality of VNet peering, which is fundamentally about enabling seamless and secure communication between virtual networks.