AZ-700 · Domain 2 of 5

AZ-700 Domain 2: Design, implement, and manage connectivity services

Hybrid connectivity for Azure: site-to-site and point-to-site VPN gateways, authentication and tunnel types, ExpressRoute circuits, peering and resiliency options, and Virtual WAN hubs with scale units and hub routing.

Exam weight
20–25%
Official functional groups
4
Estimated questions estimate
~12
Suggested study time estimate
14–18 hrs

About 12 min read Reviewed October 2026

Overview

Domain 2 covers how on-premises networks, remote users and branch offices connect to Azure. Microsoft lists four functional groups. Site-to-site VPN covers high-availability design, gateway SKU selection, policy-based versus route-based VPNs, local network gateways, custom IPsec/IKE policies, troubleshooting and Azure Extended Network. Point-to-site VPN covers gateway SKUs, tunnel types, certificate, RADIUS and Microsoft Entra ID authentication, client configuration files, Always On VPN and Azure Network Adapter.

The ExpressRoute group is the longest list in the exam: connectivity models, SKUs and tiers, redundancy and disaster recovery, Global Reach, FastPath, ExpressRoute Direct, private and Microsoft peering, gateways, route advertisement, encryption and Bidirectional Forwarding Detection. The Virtual WAN group covers SKU choice, hub design, scale units, gateway deployment, hub routing and third-party NVAs in the hub.

How it's tested

Connectivity questions usually describe a company's sites, users and bandwidth needs, then ask which gateway, SKU, peering type or Virtual WAN option satisfies them. Several items list configuration steps to order, and some ask for the cheapest option that still meets resiliency, encryption or authentication requirements.

  • Match requirement to SKU

    A bandwidth, tunnel count, zone resiliency or authentication need is given, and you pick the VPN gateway, ExpressRoute or Virtual WAN SKU.

  • Pick the peering

    Traffic destinations such as VNets or Microsoft 365 are listed, and you choose private peering, Microsoft peering or both.

  • Order the build

    You arrange steps such as creating the gateway, local network gateway and connection in the order Azure requires.

Reasoning it through

A retailer has 40 branches that need connectivity to Azure and to each other, plus remote users, with minimal routing work. Building separate VPN gateways and peerings would be heavy. Virtual WAN Standard provides managed hubs where site-to-site, point-to-site and VNet connections all transit automatically. The Basic SKU supports only site-to-site VPN, so the user requirement rules it out and Standard is the answer.

Functional groups 4

Official functional groups from the Microsoft outline, in outline order.

2.1 Design, implement, and manage a site-to-site VPN connectionS2S design, gateway SKUs, policy versus route-based VPNs, IPsec policies and Azure Extended Network.
What it means
This group covers designing site-to-site VPN for high availability, choosing a virtual network gateway SKU, creating local network gateways, virtual network gateways and connections, deciding between policy-based and route-based VPNs, applying custom IPsec/IKE policies, diagnosing gateway connectivity problems and implementing Azure Extended Network to stretch an on-premises subnet into Azure.
What to understand
A local network gateway represents the on-premises device: its public IP or FQDN and either its address prefixes or BGP settings. Route-based gateways support IKEv2, multiple sites, BGP, point-to-site and coexistence with ExpressRoute, while policy-based gateways are limited to one tunnel with static policies. Active-active gateways with zone-redundant AZ SKUs give the highest availability, especially when the on-premises side also has two devices. A custom IPsec/IKE policy fixes algorithms and key strengths for one connection.
How it shows up
Expect a scenario listing on-premises device limits, tunnel counts and availability goals, followed by a gateway type or SKU choice.
Common confusion
Choosing policy-based because the on-premises device is old, when the scenario also needs several sites or point-to-site access.
2.2 Design, implement, and manage a point-to-site VPN connectionP2S SKUs, tunnel types, authentication, client profiles, Always On VPN and Azure Network Adapter.
What it means
This group covers choosing a gateway SKU for point-to-site, selecting OpenVPN, IKEv2 or SSTP tunnels, choosing certificate, RADIUS or Microsoft Entra ID authentication, distributing VPN client configuration files, troubleshooting client and authentication issues, and the Azure requirements for Always On VPN and Azure Network Adapter.
What to understand
OpenVPN runs over TLS on port 443 and works across Windows, macOS, Linux, iOS and Android. Microsoft Entra ID authentication requires the OpenVPN tunnel type and the Azure VPN Client, which allows Conditional Access and MFA. SSTP is Windows only, and IKEv2 suits native clients on several platforms. RADIUS lets an existing NPS or Active Directory setup authenticate users. The Basic SKU lacks RADIUS, IKEv2 and OpenVPN support. Always On VPN and Azure Network Adapter both need a route-based gateway.
How it shows up
Expect a mix of client operating systems and an identity requirement, then a tunnel type plus authentication method choice.
Common confusion
Pairing Microsoft Entra ID authentication with IKEv2 or SSTP; Entra ID authentication works only with OpenVPN.
2.3 Design, implement, and manage Azure ExpressRouteConnectivity models, SKUs, peering, gateways, Global Reach, FastPath, Direct, encryption and BFD.
What it means
This group covers selecting a connectivity model and SKU tier, designing for cross-region connectivity, redundancy and disaster recovery, Global Reach, FastPath and ExpressRoute Direct, choosing and configuring private and Microsoft peering, creating ExpressRoute gateways and connecting VNets, recommending route advertisement, encrypting traffic and implementing Bidirectional Forwarding Detection, plus troubleshooting circuits.
What to understand
Connectivity models are cloud exchange colocation, point-to-point Ethernet, any-to-any IPVPN and ExpressRoute Direct. Local reaches only nearby regions with unmetered data, Standard reaches regions in the same geopolitical area, and Premium reaches all regions with higher route and VNet limits. Private peering reaches VNets; Microsoft peering reaches Microsoft public services with route filters and public prefixes. Global Reach links on-premises sites through two circuits. FastPath sends data around the gateway. Encryption uses IPsec over private peering or MACsec on Direct ports.
How it shows up
Expect requirements such as reaching Microsoft 365, linking two data centers, or lowering gateway latency, with each pointing to one ExpressRoute feature.
Common confusion
Thinking ExpressRoute traffic is encrypted by default; it is private, but encryption needs MACsec or IPsec added.
2.4 Design and implement an Azure Virtual WAN architectureVirtual WAN SKUs, hubs, scale units, gateways, hub routing and NVAs.
What it means
This group covers choosing a Basic or Standard Virtual WAN, designing the architecture and choosing hub types and services, creating virtual hubs, picking scale units for each gateway type, deploying VPN, ExpressRoute and point-to-site gateways into a hub, configuring hub routing with route tables, associations and propagation, and integrating third-party network virtual appliances for cloud connectivity.
What to understand
Basic supports only site-to-site VPN; Standard adds ExpressRoute, point-to-site, inter-hub transit, VNet-to-VNet transit and Azure Firewall or NVAs in the hub. Each hub needs its own address space, a /23 or larger as Microsoft recommends. Scale units set gateway throughput independently per gateway type. Hub routing uses association to pick which route table a connection uses and propagation to choose which tables learn its routes. Routing intent simplifies sending private or internet traffic through a hub firewall.
How it shows up
Expect large branch estates or global hubs, with questions about SKU, routing tables or adding an SD-WAN appliance in the hub.
Common confusion
Confusing association with propagation; association chooses a connection's route table, while propagation advertises its routes to tables.

High-yield concepts

The terms, rules and formulas this domain turns into questions most often.

  • Route-based vs policy-based VPN

    Route-based uses routing and IKEv2; policy-based uses static traffic selectors.

    Remember
    Only route-based supports multiple sites, P2S and BGP.
    Tested as
    Gateway type questions.
    Trap
    Choosing policy-based for a multi-site design.
  • Local network gateway

    The Azure object describing the on-premises VPN device and its prefixes or BGP peer.

    Remember
    Update prefixes when on-premises ranges change.
    Tested as
    S2S build questions.
    Trap
    Confusing it with the Azure virtual network gateway.
  • Active-active gateway

    Two gateway instances each with its own tunnel and public IP.

    Remember
    Pair with two on-premises devices for full redundancy.
    Tested as
    High availability questions.
    Trap
    Assuming active-standby has no downtime during failover.
  • OpenVPN tunnel type

    TLS-based P2S tunnel on port 443 for most client platforms.

    Remember
    Required for Microsoft Entra ID authentication.
    Tested as
    P2S questions.
    Trap
    Selecting SSTP for macOS clients.
  • P2S authentication options

    Certificates, RADIUS or Microsoft Entra ID.

    Remember
    Entra ID enables Conditional Access and MFA.
    Tested as
    Identity questions.
    Trap
    Choosing RADIUS on a Basic SKU gateway.
  • ExpressRoute SKUs

    Local, Standard and Premium tiers with metered or unlimited data.

    Remember
    Premium enables global reach across geopolitical regions.
    Tested as
    Circuit design questions.
    Trap
    Choosing Standard for cross-geography VNets.
  • Private vs Microsoft peering

    Private peering reaches VNets; Microsoft peering reaches Microsoft public services.

    Remember
    Microsoft peering needs public IPs and route filters.
    Tested as
    Peering selection questions.
    Trap
    Using private peering for Microsoft 365.
  • Global Reach

    Connects two on-premises sites through their ExpressRoute circuits over the Microsoft backbone.

    Remember
    It links circuits, not VNets.
    Tested as
    Site-to-site over ExpressRoute questions.
    Trap
    Using it to connect VNets.
  • FastPath

    Sends data straight to VMs, bypassing the ExpressRoute gateway in the data path.

    Remember
    It needs a high-performance gateway SKU.
    Tested as
    Latency and throughput questions.
    Trap
    Expecting it to remove the need for a gateway.
  • ExpressRoute encryption

    IPsec VPN over private peering or MACsec on ExpressRoute Direct.

    Remember
    ExpressRoute is private but not encrypted by default.
    Tested as
    Compliance questions.
    Trap
    Assuming default encryption.
  • Bidirectional Forwarding Detection

    Fast link failure detection on BGP sessions.

    Remember
    Configure it on the customer edge routers too.
    Tested as
    Failover speed questions.
    Trap
    Tuning BGP timers instead.
  • Virtual WAN Basic vs Standard

    Basic offers S2S VPN only; Standard adds ER, P2S, transit and firewalls.

    Remember
    Upgrade from Basic to Standard is supported, not the reverse.
    Tested as
    Virtual WAN design questions.
    Trap
    Picking Basic when users need P2S.
  • Hub scale units

    Throughput setting for each hub gateway type.

    Remember
    Scale VPN, ER and P2S separately.
    Tested as
    Capacity questions.
    Trap
    Assuming one setting covers all gateways.

Side by side

Concepts candidates mix up, compared on the point that decides the answer.

VPN tunnel types

ConceptMeaningKey differenceCommon trap
OpenVPN TLS tunnel on port 443 Broadest client support and Entra ID auth Thinking it needs a third-party server
IKEv2 Standards-based IPsec tunnel Native on many platforms, may be blocked by firewalls Using it with Entra ID auth
SSTP Microsoft TLS-based tunnel Windows clients only Choosing it for macOS or Linux

ExpressRoute tiers

ConceptMeaningKey differenceCommon trap
Local Access to regions near the peering location Data transfer included Expecting distant regions
Standard Access to regions in the same geopolitical area Default choice for single geography Using it across geographies
Premium Access to all regions with higher limits More routes and VNet links Paying for it when not needed

Hybrid connectivity choices

ConceptMeaningKey differenceCommon trap
Site-to-site VPN Encrypted tunnel over the internet Fast to deploy, internet performance Expecting fixed latency
ExpressRoute Private circuit through a provider Predictable performance, no default encryption Assuming it is encrypted
Virtual WAN Managed hubs with automatic transit Scales to many branches Choosing Basic for ExpressRoute

Exam traps

Each trap is an answer that looks right. Learn the clue that should change your mind.

  1. Policy-based is simpler

    What candidates pick
    Choose a policy-based VPN for any static on-premises device.
    Why it looks right
    It sounds like the conservative option.
    Why it's wrong
    Policy-based gateways support only one site-to-site tunnel and no point-to-site, so most multi-requirement scenarios need route-based.

    Clue to watch for More than one site or remote users appear in the requirements.

  2. Private peering reaches everything

    What candidates pick
    Use only private peering to reach Microsoft 365 and Azure PaaS public endpoints.
    Why it looks right
    Private sounds more secure.
    Why it's wrong
    Private peering reaches VNet address space; Microsoft public services need Microsoft peering with route filters.

    Clue to watch for Requirement names Microsoft 365 or public service endpoints.

  3. Global Reach links VNets

    What candidates pick
    Enable Global Reach so two VNets can talk.
    Why it looks right
    Global sounds like VNet-wide connectivity.
    Why it's wrong
    Global Reach connects on-premises networks through their circuits; VNets connect via peering or gateways.

    Clue to watch for Two data centers must exchange traffic over Microsoft's backbone.

  4. FastPath removes the gateway

    What candidates pick
    Delete the ExpressRoute gateway after enabling FastPath.
    Why it looks right
    FastPath bypasses the gateway.
    Why it's wrong
    The gateway still handles route exchange; FastPath bypasses it only for data packets.

    Clue to watch for Requirement is lower latency on an existing connection.

  5. Default encryption

    What candidates pick
    Rely on ExpressRoute alone for encryption compliance.
    Why it looks right
    The circuit is private.
    Why it's wrong
    A private circuit is not encrypted; add MACsec on Direct ports or an IPsec tunnel over private peering.

    Clue to watch for Regulation demands encryption in transit.

  6. One scale unit for all

    What candidates pick
    Set a single Virtual WAN scale setting for every gateway.
    Why it looks right
    Hubs feel like one appliance.
    Why it's wrong
    Each gateway type in a hub has its own scale unit count and throughput.

    Clue to watch for Different bandwidth figures are given for VPN and ExpressRoute.

Answer framework

Apply these steps to any AZ-700 hybrid connectivity scenario.

  1. Identify who connects: whole sites, individual users, many branches or other clouds, since each points to S2S, P2S, ExpressRoute or Virtual WAN.
  2. Read the performance, latency and encryption requirements to decide between internet VPN, ExpressRoute with optional MACsec or IPsec, or both together.
  3. Pick the SKU last but carefully, checking tunnel counts, authentication types, zone resiliency, ExpressRoute tier and Virtual WAN Basic versus Standard.
  4. Choose peering and routing details: private or Microsoft peering, route advertisement preferences, BFD, Global Reach or FastPath where a requirement names them.
  5. Confirm resiliency by adding active-active gateways, a second circuit or peering location, or a VPN backup path for ExpressRoute.

Practice question

Your company has a 1 Gbps ExpressRoute Standard circuit in Europe. It must now reach VNets in East US and connect its London and Frankfurt data centers to each other over Microsoft's network. Which two changes meet these requirements?

Choose one answer

Want more like this? The AZ-700 practice test has questions for every domain.

Checklist

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Study strategy

Build a requirement-to-feature map for this domain before anything else. Write each likely requirement on the left, such as Microsoft 365 access, macOS users, MFA, two data centers or lowest latency, and the matching feature on the right. Most AZ-700 connectivity items reduce to one row of that map.

Next, deploy a route-based VPN gateway in a lab and connect it to another VNet or a simulated on-premises network to see local network gateways, connections and BGP settings. Configure point-to-site with certificate authentication, then switch to Microsoft Entra ID and note which tunnel types disappear.

ExpressRoute is hard to lab, so study the Microsoft Learn architecture pages and diagrams for peering types, tiers, resiliency models, Global Reach and FastPath. Finish with Virtual WAN, focusing on SKU differences, scale units and hub routing. Practice questions that ask for the cheapest compliant option are especially useful here, since many distractors are technically valid but oversized.

FAQ

How much of AZ-700 is Domain 2, Design, implement, and manage connectivity services?

Microsoft weights it at 20–25% of the exam, across four functional groups: site-to-site VPN, point-to-site VPN, ExpressRoute and Virtual WAN.

When do I need ExpressRoute Premium?

When VNets are in a different geopolitical region from the peering location, or when you need more routes or VNet links than Standard allows.

Which authentication works with OpenVPN only?

Microsoft Entra ID authentication for point-to-site requires the OpenVPN tunnel type and the Azure VPN Client.

Is ExpressRoute encrypted?

Not by default. Use MACsec on ExpressRoute Direct ports or run an IPsec VPN over private peering when encryption is required.

What is the difference between Global Reach and FastPath?

Global Reach connects on-premises sites to each other through their circuits. FastPath improves data path performance by bypassing the ExpressRoute gateway.

Can I upgrade Virtual WAN from Basic to Standard?

Yes. Basic can be upgraded to Standard, but Standard cannot be downgraded to Basic.

Can VPN and ExpressRoute gateways coexist?

Yes, a route-based VPN gateway and an ExpressRoute gateway can share one VNet, with the VPN used as a backup path.

Other Networking certifications

Where the same subject shows up in other exams. Cards marked "Same subject" open the matching domain.

Test your Domain 2 knowledge

You have covered site-to-site and point-to-site VPN, ExpressRoute features and Virtual WAN hubs. Test whether you can map hybrid requirements to the right gateway and SKU.

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