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Networking guide · Updated October 2026

Azure Virtual Networks Can Be Created Using

Azure VNets can be created with the portal, Azure CLI, PowerShell, ARM/Bicep, Terraform or the REST API. Learn what a VNet is, how to create one step by step, example designs and best practices.

✍️ Azure Trainings trainers⏱ 4 min read📅 Updated 11 October 2026
⚡ Short answer

Azure virtual networks can be created using the Azure portal, Azure CLI, Azure PowerShell, ARM templates or Bicep, Terraform and the REST API / SDKs. They all create the same VNet. Use the portal to learn, and code (CLI, Bicep or Terraform) for repeatable, real environments.

The answer

Tools you can use to create a VNet

🖱️

Azure portal

Point-and-click. Best for learning.

⌨️

Azure CLI

az network vnet create — quick scripts.

💠

Azure PowerShell

New-AzVirtualNetwork — Windows-friendly automation.

📄

ARM / Bicep

Azure-native infrastructure as code.

🟪

Terraform

azurerm_virtual_network — multi-cloud IaC.

🔌

REST API / SDKs

Create networks from your own apps.

The basics

What is an Azure Virtual Network?

A VNet is your own private network in Azure. VMs, private endpoints and AKS clusters inside it talk to each other securely, and you control how they reach the internet and on-premises.

🔢

Address space

Private IP range, e.g. 10.0.0.0/16.

🧩

Subnets

Smaller ranges to group resources.

🚦

NSGs

Rules that allow or deny traffic.

🔗

Connectivity

Peering, VPN Gateway, ExpressRoute.

Benefits

•  Isolation and security — keep resources private

•  Segmentation — separate web, app and database tiers

•  Hybrid connectivity — VPN or ExpressRoute to your office

•  Private access to PaaS — private endpoints keep traffic off the internet

•  Scalability — add subnets and peer VNets as you grow

Hands-on

Step by step: create a VNet in the Azure portal

Step 1

Sign in

Open the Azure portal.

Step 2

Create

Search Virtual networks and click Create.

Step 3

Basics

Subscription, resource group, name (e.g. vnet-app-prod) and region.

Step 4

Security

Optionally enable Bastion, Azure Firewall or DDoS Protection.

Step 5

IP addresses

Address space 10.0.0.0/16, subnet 10.0.1.0/24 for web.

Step 6

Review + create

Check settings, create, then add an NSG to each subnet.

With code

Create a VNet with Azure CLI

az network vnet create \
  --resource-group rg-network \
  --name vnet-app-prod \
  --address-prefix 10.0.0.0/16 \
  --subnet-name snet-web \
  --subnet-prefix 10.0.1.0/24

In PowerShell use New-AzVirtualNetwork with New-AzVirtualNetworkSubnetConfig. In Bicep, ARM or Terraform, define the VNet once and deploy the same network every time.

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Examples

Example VNet designs

🏛️

Three-tier app

Web, app and database subnets with NSGs between them and a private endpoint for Azure SQL.

🎯

Hub-and-spoke

A hub VNet with shared firewall and VPN gateway, peered to spoke VNets per app.

🏢

Hybrid

A VNet connected to the office through site-to-site VPN or ExpressRoute.

Do it right

Best practices for Azure VNets

✕  Overlapping IP ranges with on-premises or other VNets

✕  Public IPs on VMs instead of Azure Bastion

✕  One flat subnet for everything

✕  PaaS services reached over the public internet

✕  Networks built by hand with no code

✅ ✅ Do this instead: Plan non-overlapping IP ranges, separate tiers with subnets + NSGs, use private endpoints and Bastion, adopt hub-and-spoke for larger setups, and build networks with Bicep or Terraform. Azure Virtual Network Manager helps manage many VNets centrally.

Still wondering?

Frequently asked questions

Azure virtual networks can be created using which tools?

The Azure portal, Azure CLI, Azure PowerShell, ARM templates or Bicep, Terraform, and the REST API or SDKs.

What is an Azure Virtual Network?

A private, isolated network in Azure with your own IP ranges, subnets and security rules.

What is a subnet?

A smaller IP range inside a VNet used to group and secure resources.

How do I connect two VNets?

Use VNet peering, or a VPN gateway for VNet-to-VNet connections.

Is there a cost for Azure VNets?

Creating a VNet is free. You pay for things like peering traffic, gateways, public IPs and firewalls.

🎓
Written by the Azure Trainings training team

Based on what we teach in our batches and see in real projects. Last updated 11 October 2026. Spotted something outdated? Tell us on WhatsApp.

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