AZ-700

AZ-700 Exam Info

  • Exam Code: AZ-700
  • Exam Title: Designing and Implementing Microsoft Azure Networking Solutions
  • Vendor: Microsoft
  • Exam Questions: 356
  • Last Updated: August 30th, 2025

Understanding the Role of an Azure Network Engineer AZ-700 

The responsibilities of an Azure Network Engineer go beyond configuring IP addresses or subnetting a virtual network. This role involves architecting, implementing, and maintaining scalable network solutions in a cloud-native environment. The emphasis is on secure, reliable, and high-performance connectivity between on-premises infrastructure, cloud workloads, and hybrid systems. Success in this role requires both a conceptual understanding of network design and practical skills in implementing network services using tools provided in the Azure platform.

In preparing for the AZ-700 exam, one must understand that it is not just about memorizing commands or configurations. The exam evaluates the ability to apply concepts in real-world situations where trade-offs must be made between performance, cost, and security.

Core Topics that Shape Azure Network Design

One of the first areas of focus should be virtual networks. These networks act as the backbone for most Azure services. Understanding how address spaces, subnets, and IP allocation strategies impact scalability and isolation is critical. It's also essential to learn how to create network boundaries using resource groups and how network segmentation improves security posture.

Routing is another crucial area. Azure provides both system routes and the ability to define custom routes using user-defined route tables. Being able to distinguish when to override default routes and understanding next-hop behaviors is necessary for advanced scenarios, especially when dealing with hybrid environments or network appliances.

Equally important is the concept of peering. Virtual network peering enables resources in different virtual networks to communicate without additional gateways or appliances. However, the exam expects an understanding of both peering limitations and best practices such as non-transitive connectivity and DNS resolution challenges between peered networks.

Deep Dive into Network Security Groups and Application Rules

Security plays a foundational role in every Azure networking solution. Network Security Groups (NSGs) are commonly used to filter traffic at the subnet or network interface level. Mastery of NSGs means understanding how priority values determine which rule is applied first, how to interpret inbound and outbound rules, and when to use service tags for broader application of policies.

Application security groups enhance NSGs by allowing dynamic grouping of resources based on application roles rather than IPs. This allows for more scalable and manageable security configurations, especially in environments with high resource churn.

There’s also the need to understand how firewalls operate within Azure. Unlike traditional firewalls, Azure's offerings are platform-native and deeply integrated with services such as Azure Monitor, Threat Intelligence, and platform logs. Policies can be centrally managed and customized using rule collections, and the exam expects a thorough grasp of NAT rules, network rules, and application rules. It is also important to understand when to use a firewall instead of relying solely on NSGs.

Designing for Hybrid Connectivity

In many enterprise environments, a hybrid approach is the norm rather than the exception. Configuring site-to-site VPNs, ExpressRoute circuits, and point-to-site configurations forms a critical skill set for Azure network engineers. Hybrid solutions enable secure communication between on-premises environments and cloud resources, with considerations around encryption, latency, and throughput.

Virtual WAN is a concept that merges hub-and-spoke network architecture with centralized management. Understanding how to build scalable, global connectivity using Virtual WAN hubs and branches is important for exam scenarios that test global enterprise requirements.

The configuration of VPN gateways, ExpressRoute peering options, and failover mechanisms will likely appear in multiple forms throughout the exam. For success, it's essential to develop fluency with metrics like aggregate throughput, shared vs. dedicated bandwidth, and circuit status monitoring.

Application Delivery and Load Balancing Techniques

Modern cloud applications are distributed across multiple services and regions. Azure provides a range of tools to ensure high availability and optimal performance for these distributed applications. Load balancers form a significant part of that toolkit.

The AZ-700 exam requires a detailed understanding of the differences between basic and standard load balancers. Topics such as health probes, distribution modes, and backend pool management must be clearly understood. Equally important is knowing how to integrate load balancers with availability sets and scale sets.

There is also a focus on application gateways, which add Layer 7 (HTTP/HTTPS) routing capabilities, SSL termination, and web application firewall features. This tool is ideal for scenarios where intelligent traffic routing is necessary. Understanding listener configurations, rule sets, and path-based routing will be key.

In addition to these, Traffic Manager and Front Door provide global load balancing. These services offer different routing methods like performance-based routing, geographic routing, and priority failover. The exam may present complex scenarios requiring you to combine multiple load balancing solutions, and the ability to articulate why a specific solution fits best is tested more than simply knowing how to configure it.

Monitoring and Performance Optimization

Designing an efficient network does not stop at deployment. Visibility and performance tuning are equally important. Azure Monitor, Network Watcher, and Log Analytics provide capabilities to trace packet flow, capture diagnostics, and trigger alerts on abnormal behavior.

For the exam, familiarity with connection troubleshooters, topology tools, and network performance monitors is expected. This includes knowing how to diagnose latency, dropped packets, and misconfigured rules using built-in diagnostics.

Another area is designing resilient networks. Azure provides service-level agreements (SLAs) for different networking components, but it's up to the engineer to design for redundancy using availability zones, paired regions, and failover strategies. The exam scenarios may involve interpreting a failure scenario and recommending an optimal resolution path based on existing SLAs and expected uptime.

Private Access and Secure Connectivity Patterns

As organizations prioritize security and compliance, private connectivity becomes more important than ever. Azure Private Link allows services to be accessed over private IP addresses without exposing them to the public internet. The key to understanding Private Link is knowing how to create private endpoints, manage DNS integration, and configure access across multiple virtual networks.

Network Virtual Appliances (NVAs) represent another option for advanced connectivity needs. These appliances can act as firewalls, routers, or traffic inspectors, often offering capabilities not natively available in Azure services. The exam may present decision-making scenarios where using an NVA is the best choice, especially in regulatory or legacy application environments.

One must also understand service endpoints and how they differ from private endpoints. While both provide secure access, service endpoints allow traffic to remain within the Azure backbone and are configured at the subnet level. Choosing the right tool based on network isolation, performance, and manageability is a skill often tested in practical exams.

DNS Architecture and Integration

DNS resolution in Azure goes beyond assigning friendly names to IP addresses. The exam tests knowledge of Azure DNS, private DNS zones, and DNS forwarders. It is essential to understand how DNS affects resource discovery and application performance.

Private DNS zones enable name resolution within virtual networks without the need for custom DNS servers. The exam may focus on scenarios involving split-horizon DNS, zone linking across networks, and hybrid DNS forwarding using on-premises servers.

An Azure network engineer must also be capable of troubleshooting DNS resolution failures, including stale records, unlinked zones, and misconfigured conditional forwarders. These scenarios are common in both exam questions and real-world operations.

Understanding azure virtual networking in real deployments

Working with Azure Virtual Networks (VNets) goes beyond textbook learning. It involves designing secure, scalable, and highly available network infrastructures. VNets serve as the core of all networking in Azure. One must understand how subnets, address spaces, service endpoints, and private endpoints work together to build a stable foundation.

A real deployment scenario would require you to divide your VNet into multiple subnets based on workload types—such as front-end, application, and data layers. This division isn't just for organization—it enforces isolation and enables fine-grained network security. You will also need to plan your IP addressing to prevent overlapping and support future growth, especially when designing for hybrid environments.

Mastering subnet design and route control

Subnetting is crucial in segmenting networks and controlling traffic flow. In Azure, subnets enable workload isolation and allow targeted application of Network Security Groups (NSGs) and route tables. But the real skill lies in planning subnet boundaries with foresight. You should ensure each subnet has ample room for scaling without exhausting IP addresses, especially when using services like Azure Kubernetes Service (AKS) or application gateways that consume multiple IPs.

When managing route control, user-defined routes (UDRs) allow you to override Azure’s default system routes. This becomes necessary in complex network architectures, such as when directing traffic through a firewall or forcing traffic inspection before egress. A mistake in routing can result in dropped packets, failed service communication, and even misrouted traffic to on-premises locations, so configuration testing is a must.

Implementing hybrid connectivity with precision

Many organizations operate in hybrid environments, which means their Azure networks must integrate securely and efficiently with on-premises infrastructures. ExpressRoute and VPN Gateway are the two primary options for hybrid connectivity. Understanding when to use each is a key part of the AZ-700 exam and essential in real-world network engineering.

ExpressRoute provides private, dedicated connectivity and is favored for latency-sensitive, mission-critical workloads. VPN Gateway is often used for smaller deployments or as a backup to ExpressRoute. In many designs, both are implemented in an active-passive failover model. You must learn to design resilient architectures using BGP for route exchange and implement failover testing scenarios.

You’ll often be challenged to troubleshoot traffic not reaching its destination because of routing asymmetry, missing routes in BGP advertisements, or overlapping IPs between environments. These are scenarios where practical experience and packet-level diagnostics are essential.

Deploying azure firewall and network virtual appliances

Azure Firewall plays a significant role in securing outbound and inbound traffic. It offers features such as stateful inspection, application rules, and threat intelligence. However, configuring it properly requires understanding of how it integrates with route tables and NSGs. For example, simply deploying Azure Firewall without updating the UDRs to redirect traffic won’t enforce inspection.

Network Virtual Appliances (NVAs) offer third-party solutions for deep packet inspection or advanced routing. Implementing NVAs involves deploying virtual machines in a hub-and-spoke network and configuring routing so that all traffic flows through them. It also demands consideration of high availability, which might require configuring availability zones, load balancers, and session persistence.

Designing around Azure Firewall and NVAs introduces complexity. One must plan for routing, throughput limitations, scalability, and resilience. Often, solutions are built using a mix of Azure-native and third-party tools. Real expertise lies in selecting and configuring the right tools for the right scenarios.

Building hub-and-spoke and virtual WAN architectures

Enterprise-grade networks often adopt a hub-and-spoke model. The hub hosts shared services like firewalls, DNS, and identity management, while spokes host isolated workloads. This approach simplifies connectivity management and centralizes control. Understanding how to configure VNet peering, route propagation, and isolation boundaries is vital.

When moving to global architectures, Azure Virtual WAN offers simplified management of large-scale networks. It combines connectivity, routing, and security under a unified model. With Virtual WAN, you can connect branch offices, remote users, and VNets across regions. It simplifies BGP configurations and makes deploying secured, site-to-site VPNs much easier.

But Virtual WAN also introduces abstractions that must be carefully understood. Misconfigured route tables or improper association of security policies can cause widespread connectivity issues. Designing for global performance while preserving control over traffic flows is a balancing act that requires deep knowledge.

Advanced scenarios with private link and service endpoints

Private Link and Service Endpoints are two Azure features that enable secure access to platform services from within a VNet. Service Endpoints extend the VNet identity to Azure services, allowing for more granular access control. However, traffic still flows over the public network backbone.

Private Link, on the other hand, brings the service into your VNet through a private endpoint. It offers better data exfiltration protection and is a preferred solution for compliance-sensitive environments. But Private Link comes with DNS challenges—name resolution must be carefully configured to direct traffic to the private endpoint rather than the public address.

An engineer must be able to decide between the two based on factors like compliance, performance, and architectural complexity. Exam scenarios often test understanding of these subtle differences and how they impact network behavior.

Securing network traffic using layered controls

Security in Azure networking is layered. NSGs operate at the subnet or NIC level to allow or deny traffic based on rules. They’re stateless and require explicit rules in both directions unless default rules apply. Proper rule planning and order are critical because Azure evaluates NSG rules top-down.

Application Security Groups (ASGs) allow grouping of virtual machines for simplified rule management. They are especially useful in dynamic environments. However, they require thoughtful implementation, especially in rapidly scaling workloads where ASG-based rules may need regular updates.

Combining NSGs with Azure Firewall or NVAs creates a layered defense model. Traffic filtering happens at multiple levels, which means troubleshooting must be methodical. Understanding flow logs and using tools like Network Watcher becomes essential. If traffic is dropped, you’ll need to examine each layer of control to identify where the denial occurred.

Managing name resolution in complex networks

DNS configuration in Azure often becomes a stumbling block, especially in hybrid and multi-VNet setups. Azure-provided DNS works well for basic scenarios, but enterprise networks typically require custom DNS servers to support internal resolution and split-brain DNS.

You’ll be tested on how to configure custom DNS, set up conditional forwarders, and ensure recursive resolution across VNets. Scenarios may include integrating with on-premises DNS servers, resolving names in peered VNets, or supporting Azure Private DNS zones.

Troubleshooting DNS issues involves examining DNS query paths, verifying forwarding rules, and ensuring that virtual machines are configured to point to the correct DNS servers. Misconfigurations can break connectivity to Azure services, especially when using Private Link.

Evaluating connectivity options for internet and external services

Not all traffic stays within Azure. Connecting to the internet and external services must be done securely. Default outbound access is provided by Azure, but most production workloads require explicit egress through firewalls or NVAs. Planning secure egress paths with predictable public IP addresses is often a requirement.

You must understand NAT Gateway, how it associates with subnets, and how it differs from SNAT via load balancers. NAT Gateway offers higher scale and better control over outbound connections, especially in scenarios where source IP must be preserved for backend services.

There are also considerations for inbound traffic using Azure Front Door or Application Gateway. These services provide application layer routing and load balancing but come with their own configuration models and integration points. Picking the right service and configuring it effectively requires a deep understanding of both networking and application behavior.

The AZ-700 exam tests your ability to think like a network architect. That means designing solutions that are resilient, secure, scalable, and cost-effective. You need to look beyond individual components and focus on how they interact.

For instance, deploying a firewall is not enough—you must plan how traffic will reach it, how failover is handled, how logs are collected, and how updates are applied without downtime. Every decision has downstream implications on security, performance, and maintainability.

The best preparation is building scenarios from scratch. Create a hub-and-spoke network, secure it with NSGs and Azure Firewall, integrate DNS and Private Link, then break it intentionally. Observe what happens. This builds not just knowledge, but true expertise.

Mastering advanced routing techniques in azure

The AZ-700 exam tests a network engineer's capability to implement and manage sophisticated routing architectures within Microsoft Azure. While routing is a basic networking principle, its application in cloud environments brings complexity due to abstraction, scalability, and hybrid integration requirements. 

Understanding user-defined routes and route tables

Azure provides system routes by default, which automatically handle basic routing across subnets, virtual networks, and to the internet. However, when custom requirements emerge—such as forcing traffic through network appliances—user-defined routes (UDRs) become essential. These UDRs override default behaviors and are critical in traffic redirection, segmentation, and monitoring.

In production environments, you will often see route tables with UDRs applied to subnets to ensure traffic flows through a next-hop like a firewall, a virtual network appliance (NVA), or a peered network. Each route consists of an address prefix, a next-hop type, and a next-hop address. The ability to read, design, and troubleshoot these configurations is indispensable for both the exam and hands-on work.

One common pattern involves inspecting asymmetric routing. If return traffic bypasses the original ingress path, connectivity might break due to stateful firewall behavior. Engineers must carefully plan route tables to enforce symmetric routing, especially when multiple NVAs or redundant gateways are used.

Integrating nvrs into routing topologies

Network virtual appliances are often used to deliver advanced security services such as intrusion detection, packet inspection, and traffic filtering. In an Azure routing context, NVAs serve as forced tunnel points, where all traffic from a subnet is directed through the appliance before proceeding.

To make this work, UDRs with next-hop type set to Virtual Appliance are used. You must also make sure that return paths from the NVA are symmetrical, often requiring separate route tables for inside and outside subnets. Understanding these bidirectional dependencies is vital. A misconfiguration here can easily lead to dropped packets or network black holes.

When studying for the AZ-700, it's important to simulate these environments. Try routing traffic from one subnet to another through an NVA, while blocking direct communication. This exercise alone will reveal insights into IP forwarding, default gateway behavior, and Azure’s system route logic.

The role of azure firewall and forced tunneling

Azure Firewall introduces another layer of control in routing. Unlike NVAs, which are typically deployed from marketplace images or custom appliances, Azure Firewall is a fully managed stateful firewall service. It supports logging, FQDN filtering, threat intelligence, and NAT rules, all managed via policy.

A key exam-relevant scenario involves forced tunneling through Azure Firewall. This setup routes all internet-bound traffic to an on-premises location for inspection. In such deployments, a default route (0.0.0.0/0) is configured with a next-hop pointing to an Azure firewall or VPN gateway. Forced tunneling disables system routes that normally handle internet traffic, so this approach must be applied with caution.

Forcing internet traffic to an on-premises firewall is common in industries with strict compliance requirements. However, DNS resolution becomes a concern. You may need to configure Azure DNS Forwarders or custom DNS settings to maintain name resolution when forced tunneling is active.

These routing designs are frequent topics on the AZ-700, and hands-on experience is the best way to internalize the technical nuances.

Hybrid connectivity with vpn and expressroute

Routing becomes even more layered when connecting on-premises networks to Azure through VPN or ExpressRoute. Each hybrid connectivity option comes with its own routing priorities and failover strategies.

When VPN gateways are deployed, Azure defines system routes that direct on-premises traffic through the gateway subnet. However, if you add UDRs on connected subnets, you can override this behavior, sending traffic through an NVA first, then to the gateway. This pattern is useful for scenarios like monitoring outbound VPN traffic.

ExpressRoute connections, on the other hand, create private peering routes that take precedence over VPN and internet routes. The ability to understand BGP propagation in this context is essential. Azure automatically injects BGP routes received over ExpressRoute into its route tables, but engineers can use route filters to control what is accepted or advertised.

Designing hybrid topologies where ExpressRoute is the primary path and VPN is the failover requires careful route weight management and dynamic BGP configuration. Exam questions often test these routing behaviors, especially in scenarios where high availability or compliance is critical.

Virtual hub routing and secured virtual WANs

Virtual WAN introduces yet another routing model, using hubs as centralized points for connectivity. Each hub has its own routing tables, and these tables govern how traffic is forwarded between VNets, on-premises sites, and the internet.

A key concept here is the association and propagation model. You associate a route table to a connection (like a VNet), and propagate from other connections (such as a VPN site). This model is unlike traditional subnet route tables and can confuse those unfamiliar with it.

Azure also supports secured virtual WANs that integrate Azure Firewall into the hub. This allows centralized security inspection of all east-west and north-south traffic. For the AZ-700 exam, you must be able to configure hub route tables, validate propagation logic, and troubleshoot traffic flow through centralized hubs.

It’s also important to understand transit scenarios. For example, if a branch office connects to Azure via a VPN gateway in one hub, and a VNet resides in another region connected to a different hub, how will traffic flow? Such questions are not only theoretical but increasingly common in distributed enterprise networks.

Diagnostics and monitoring of routing issues

Diagnosing routing issues is a real-world necessity and an AZ-700 exam priority. Azure provides several tools for troubleshooting route configuration, including:

  • Effective Routes: shows what routes are applied to a given network interface
     
  • Network Watcher: offers packet capture, IP flow verify, and next-hop analysis
     
  • Azure Monitor and Logs: helps inspect Azure Firewall logs, NSG flows, and metrics
     

When debugging a failed connection, you may check the effective route table on the NIC to see if traffic is reaching the correct destination. You may also simulate IP flows using Network Watcher to confirm NSG or UDR rules.

An overlooked but critical diagnostic method is reverse path forwarding validation. Azure will silently drop packets if it detects asymmetric routing or misaligned return paths. Recognizing the signs of such issues is a valuable skill for both the exam and production systems.

Understanding address space overlap and ip planning

In large Azure environments or hybrid networks, IP address planning becomes a strategic decision. Overlapping address spaces can lead to routing failures, especially in peered networks or hub-and-spoke designs.

Azure does not support overlapping address spaces in directly peered virtual networks. You must carefully plan your IP ranges using non-overlapping CIDR blocks. When overlapping is unavoidable—such as when merging two company networks—you must use NAT or application-layer proxies to enable communication.

For the AZ-700, be prepared to identify scenarios where IP conflicts may occur and propose solutions. Questions may present topologies with overlapping IPs and ask how to enable limited communication, often requiring NAT gateway or translation strategies.

Scenarios involving private endpoints and service endpoints

Private Endpoints and Service Endpoints both aim to restrict traffic to Azure services over private networks, but they operate differently. Understanding their routing behavior is key.

Service Endpoints extend a subnet’s identity to Azure services, such as Storage or SQL, allowing traffic over the Azure backbone instead of the public internet. These use system routes, and no changes are visible in UDRs.

Private Endpoints, however, use a dedicated NIC with a private IP. This makes the service appear as a local resource in the VNet. Routing to a private endpoint must consider DNS configuration, as the endpoint requires name resolution to its private IP. Misconfigured DNS will break the connection.

Questions in AZ-700 often combine Private Link with custom DNS and hybrid networking. You may be asked to enable a private endpoint from an on-premises location using ExpressRoute. This tests your ability to handle routing and name resolution simultaneously.

Recap of key routing principles for the exam

At this stage in your preparation, you should be comfortable with:

  • Creating and applying user-defined routes to subnets
     
  • Implementing forced tunneling using Azure Firewall or NVAs
     
  • Understanding routing behavior in VPN and ExpressRoute scenarios
     
  • Configuring virtual hub routing in a virtual WAN architecture
     
  • Using tools to diagnose routing problems and packet drops
     
  • Planning non-overlapping IP spaces and mitigating address conflicts
     
  • Integrating Private Endpoints and Service Endpoints into routing topologies
     

These advanced topics often appear in complex case studies during the AZ-700 exam. Gaining mastery over them through practice labs and troubleshooting exercises will significantly boost your confidence and performance.

Conclusion

The journey to mastering the AZ-700 certification is not only about passing an exam—it is about internalizing how Azure networking functions and gaining the skills to architect and troubleshoot secure, resilient, and scalable network infrastructure in the cloud. As organizations rapidly transition to cloud-native environments, the ability to manage complex network topologies, hybrid connectivity, and advanced routing scenarios becomes a core competency for any network engineer working with Azure.

One of the most significant insights from preparing for the AZ-700 is understanding that networking in Azure is conceptually different from traditional on-premises environments. While foundational concepts like IP addressing, DNS, routing, and firewalls remain relevant, their application in Azure demands a shift in thinking. The platform introduces new layers of abstraction such as route tables, network security groups, service endpoints, private endpoints, and virtual network peering. Each of these elements behaves according to rules and scopes specific to Azure's cloud fabric. Success lies in being able to anticipate how they interact and how configurations cascade through virtual networks, subnets, and services.

A candidate aiming for this certification must move beyond theoretical learning. Reading documentation or completing multiple-choice questions alone will not provide the depth required to truly understand Azure’s networking stack. What really accelerates progress is consistent hands-on experimentation. Creating, breaking, and fixing network scenarios in a real Azure subscription helps build intuition. When you connect a virtual machine to a subnet, apply a network security group, configure custom routes, and troubleshoot a blocked connection, you internalize the logic in a way no textbook can replicate.

Additionally, it becomes evident that real-world design considerations are an important part of the exam and everyday operations. You are not just expected to configure a VPN or create an Azure Firewall—you need to understand when to use it, why it fits a specific business need, and how it aligns with governance, cost control, and security requirements. For example, deciding between Azure Bastion and a traditional jump box involves evaluating not only security concerns but also manageability and access policies. Similarly, choosing between private endpoints and service endpoints for secure access to services depends on traffic patterns, compliance boundaries, and network isolation requirements.

An effective study strategy integrates multiple learning styles. Interactive modules offer structured guidance, but they must be complemented with community discussions, deep dives into architectural diagrams, and exploration of less-covered but equally critical topics such as hybrid DNS configurations or route server integration. This approach helps develop the confidence needed to face scenario-based questions on the exam and to design solutions that work at scale in a professional setting.

In conclusion, earning the Azure Network Engineer Associate certification demonstrates more than just academic knowledge—it reflects practical fluency in Azure networking. It marks a transition from traditional network administration to cloud-focused, intent-driven architecture. Those who succeed in this path are better equipped to lead network modernization efforts, support DevOps teams, enable secure hybrid connectivity, and contribute to resilient cloud architectures that meet both current and future business demands.

 

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