Enable cross-virtual network connectivity with peering

Organizations with large scale operations create connections between different parts of their virtual network infrastructure. Virtual network peering enables you to seamlessly connect separate VNets with optimal network performance, whether they are in the same Azure region (VNet peering) or in different regions (Global VNet peering).

Network traffic between peered virtual networks is private. The virtual networks appear as one for connectivity purposes. The traffic between virtual machines in peered virtual networks uses the Microsoft backbone infrastructure, and no public Internet, gateways, or encryption is required in the communication between the virtual networks.

Virtual network peering enables you to seamlessly connect two Azure virtual networks. Once peered, the virtual networks appear as one, for connectivity purposes. There are two types of VNet peering.

• Regional VNet peering connects Azure virtual networks in the same region.
• Global VNet peering connects Azure virtual networks in different regions.

Benefits of virtual network peering

The benefits of using virtual network peering, whether local or global, include:

• A low-latency, high-bandwidth connection between resources in different virtual networks.
• The ability to apply network security groups in either virtual network to block access to other virtual networks or subnets.
• The ability to transfer data between virtual networks across Azure subscriptions, Microsoft Entra tenants, deployment models, and Azure regions.
• The ability to peer virtual networks created through the Azure Resource Manager.
• No downtime to resources in either virtual network is required when creating the peering, or after the peering is created.

Gateway Transit and Connectivity

You can configure a VPN gateway in the peered virtual network as a gateway transit point. In this case, a peered virtual network uses the remote gateway to gain access to other resources. A virtual network can have only one gateway. Gateway transit is supported for both VNet Peering and Global VNet Peering.

For example, the subnet gateway could:

• Use a site-to-site VPN to connect to an on-premises network.
• Use a VNet-to-VNet connection to another virtual network.
• Use a point-to-site VPN to connect to a client.

In these scenarios, gateway transit allows peered virtual networks to share the gateway and get access to resources. This means you don't need to deploy a VPN gateway in the peer virtual network.

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