Virtual Network Peering

Azure virtual network peering is a feature that allows you to connect two or more virtual networks in Azure, so that resources in each network can communicate as if they are on the same network. 

Virtual network peering allows you to connect virtual networks without need for gateways or VPNs, reducing latency. You can scale your network and easily manage large deployments by simply peering the networks. You can create a hub-and-spoke, where a central virtual network (hub) connects to multiple virtual networks (spokes) with virtual network peering, with the central virtual network (hub) acting as a gateway for the others connected to it (spokes). 

To set up virtual network peering in Azure, go to the virtual network you need to peer, go to Peering in Settings, click +Add. Enter the peering link name, review and create.

You can easily integrate services and enable seamless communication between these services in Azure, with virtual network peering 

Virtual network peering can cut across regions, and you can connect multiple virtual networks in Azure but, there is a maximum number of virtual networks that can peer with each other. To further extend peering, you can use Hub and Spoke Networks, User-defined Routes (UDRs) or Service Chaining. 

Virtual network peering allows you to connect multiple virtual networks. But there is a limit to how many virtual networks can directly peer with each other. Thankfully one can utilise Hub and Spoke Networks, User-defined Routes (UDRs), or Service Chaining to extend peering capabilities. 

In User-Defined Routes (UDRs), you can configure the next hop to the IP address of virtual machine within the peered virtual network or to a VPN Gateway.