The following are the steps to set up Azure VNet:

1. First of all, we navigate in our Resource group and use Add to open the Azure marketplace:

2. In the next step, we look for Virtual network within the Azure marketplace and click Virtual network:

3. In the Azure blade afterwards, you need to decide between Resource Manager and Classic. You should only choose Resource Manager. The Classic is based on the old Azure Service Manager (ASM) environment and has certain limitation. Microsoft is currently migrating all services left in ASM. After the migration, Microsoft will somehow remove ASM and all resources deployed within it:

4. In the next interface, we need to configure the network details:
   • Name: The name of your Azure network.
   • Address space: The IP address range you want to use within your Azure environment.
   • Subnet name: The name of your first subnet that could be either the gateway subnet or another one. We will stay with our server network for now and add the gateway network later.
   • Subnet address range: The IP range of the subnet you want to use.

The rest should be predefined by your resource group:

5. After the creation, the Virtual Network (VNet), should be listed in your resource group. You maybe need to click on Refresh:

6. Now we will add our gateway subnet. Therefore, we select the VNet to open the settings:

7. Yet we want to add the gateway subnet. Click on Subnets to open the subnet blade:

8. Afterwards, you select the + Gateway subnet button and another blade with the creation details will open:

9. Within that blade, you need to define the subnet mask that the gateway uses. As explained earlier, we need a minimum of /29 CIDR addresses:

10. After clicking OK, the gateway subnet will be deployed in Azure. If you want to add more subnetworks, you can use the Subnet button:

11. In the VNet settings, there is another option that could come in handy. Azure deploys every system with DHCP and by default configures Microsoft DNS servers as default DNS to the virtual machine. In most scenarios, you will need to change this setting to your own DNS server. Therefore, you can do this manually within the VM or change the default configuration within your Azure VNet. To do so, you need to select the DNS servers option in the Settings:

12. There you have a switch which changes between Azure DNS and Custom DNS:

13. We need to change it to Custom DNS and then we can add our DNS servers and Save the change:

14. Now every system within that VNet will use the Custom DNS server settings.