<\/span><\/h2>\nVNet peering<\/strong> is a fairly new feature — introduced August 2016 — within Microsoft Azure that connects two VNets, providing low latency and high speed connectivity between your Azure virtual networks.<\/p>\n<\/span>Pros<\/span><\/h2>\nLet us first look at the pros <\/strong>to VNet peering,<\/p>\n\nSubscriptions<\/strong> – VNets within different subscriptions can be linked. This can be useful in situations in which a single organization has multiple Azure subscriptions for budgetary or logistical reasons[1]<\/sup>.<\/li>\nLatency<\/strong> – Traffic routes through the internal Azure backbone, allowing low latency. The network latency for a round trip between two virtual machines in peered virtual networks is the same as for a round trip within a local virtual network[2]<\/sup>.<\/li>\nBandwidth<\/strong> – There isn’t any additional restriction on bandwidth. The network throughput is only<\/em> limited based on the virtual machines permitted bandwidth.<\/li>\nARM to ASM<\/strong> – ASM (Azure Service Management) aka classic VNets can be peered with ARM (Azure Resource Manager) VNets. However they must both be in the same subscription.<\/li>\nCost<\/strong> – There is a small cost for ingress\/egress traffic ; \u00a30.0061 per GB ingress and \u00a30.0061 per GB egress. Far cheaper then the traditional alternative of a VPN connection between each of the VNets.<\/li>\nNSG<\/strong> –\u00a0Network Security Groups (NSGs) are supported, providing you with the ability to deny\/permit both ingress and egress traffic.<\/li>\nTransitive Routing<\/strong> – Transitive routing*, though not enabled by default can be enabled via the “Allow Forwarded Traffic<\/em>” option, within the spoke VNet. This configuration option is necessary when configuring virtual networking appliances within your hub VNet, so that transit<\/em> traffic can route through the hub.<\/li>\nGateway Transit<\/strong> – Traffic can be routed though the gateway (VPN\/ExpressRoute) of a peered VNet. This provides the ability to build hub and spoke based topologies, where the spoke VNets all use the gateway of the hub.<\/li>\n<\/ul>\n <\/picture><\/p>\n*An example of transitive routing is when you have VNet A connected to VNet B. VNet B is connected to VNet C. For traffic from VNet A to reach VNet C traffic would to be transitively routed<\/em> via VNet B.<\/p>\n