There is also an option to connect different Azure VNet works in the same and between Azure region. This option is called Azure VNet peering for VNetworks in the same Azure region and global VNet peering for inter region peering. VNet peering for Azure virtual network lets you directly link two virtual networks via private IPs. VNet peering routes packets between virtual networks through the internal Azure backbone network. There is no Azure gateway between these networks. This allows a low-latency, high-bandwidth connection between virtual machines in the virtual networks.

VNet peering also allows transit through the peered virtual networks, so a network virtual appliance or a VPN gateway in one virtual network can be used by a virtual machine in another peered virtual network. Peering works across virtual networks in different subscriptions. So you are able to connect, for example, subscriptions paid by different departments or subscription owners. Later in this chapter, I will show you how to set up VNet peering.