Building A Hub & Spoke Using Azure Virtual Network Manager

In this post, I will show how to use Azure Virtual Network Manager (AVNM) to enforce peering and routing policies in a zero-trust hub-and-spoke Azure network. The goal will be to deliver ongoing consistency of the connectivity and security model, reduce operational friction, and ensure standardisation over time.

Quick Overview

AVNM is a tool that has been evolving and continues to evolve from something that I considered overpriced and under-featured, to something that I would want to deploy first in my networking architecture with its recently updated pricing. In summary, AVNM offers:

  • Network/subnet discovery and grouping
  • IP Address Management (IPAM)
  • Connectivity automation
  • Routing automation

There is (and will be) more to AVNM, but I want to focus on the above features because together they simplify the task of building out Azure platform and application landing zones.

The Environment

One can manage virtual networks using static groups but that ignores the fact that The Cloud is a dynamic and agile place. Developers, operators, and (other) service providers will be deploying virtual networks. Our goal will be to discover and manage those networks. An organisation might be simple, and there will be a one-size-fits-all policy. However, we might need to engineer for complexity. We can reduce that complexity by organising:

  • Adopt the Cloud Adoption Framework and Zero Trust recommendations of 1 subscription/virtual network per workload.
  • Organising subscriptions (workloads) using Management Groups.
  • Designing a Management Group hierarchy based on policy/RBAC inheritance instead of basing it on an organisation chart.
  • Using tags to denote roles for virtual networks.

I have built a demo lab where I am creating a hub & spoke in the form of a virtual data centre (an old term used by Microsoft). This concept will use a hub to connect and segment workloads in an Azure region. Based on Route Table limitations, the hub will support up to 400 networked workloads placed in spoke virtual networks. The spokes will be peered to the hub.

A Management Group has been created for dub01. All subscriptions for the hub and workloads in the dub01 environment will be placed into the dub01 Management Group.

Each workload will be classified based on security, compliance, and any other requirements that the organisation may have. Three policies have been predefined and named gold, silver, and bronze. Each of these classifications has a Management Group inside dub01, called dub01gold, dub01silver, and dub01bronze. Workloads are placed into the appropriate Management Group based on their classification and are subject to Azure Policy initiatives that are assigned to dub01 (regional policies) and to the classification Management Groups.

You can see two subscriptions above. The platform landing zone, p-dub01, is going to be the hub for the network architecture. It has therefore been classified as gold. The workload (application landing zone) called p-demo01 has been classified as silver and is placed in the appropriate Management Group. Both gold and silver workloads should be networked and use private networking only where possible, meaning that p-demo01 will have a spoke virtual network for its resources. Spoke virtual networks in dub01 will be connected to the hub virtual network in p-dub01.

Keep in mind that no virtual networks exist at this time.

AVNM Resource

AVNM is based on an Azure resource and subresources for the features/configurations. The AVNM resource is deployed with a management scope; this means that a single AVNM resource can be created to manage a certain scope of virtual networks. One can centrally manage all virtual networks. Or one can create many AVNM resources to delegate management (and the cost) of managing various sets of virtual networks.

I’m going to keep this simple and use one AVNM resource as most organisations that aren’t huge will do. I will place the AVNM resource in a subscription at the top of my Management Group hierarchy so that it can offer centralised management of many hub-and-spoke deployments, even if we only plan to have 1 now; plans change! This also allows me to have specialised RBAC for managing AVNM.

Note that AVNM can manage virtual networks across many regions so my AVNM resource will, for demonstration purposes, be in West Europe while my hub and spoke will be in North Europe. I have enabled the Connectivity, Security Admin, and User-Defined Routing features.

AVNM has one or more management scopes. This is a central AVNM for all networks, so I’m setting the Tenant Root Group as the top of the scope. In a lab, you might use a single subscription or a dedicated Management Group.

Defining Network Groups

We use Network Groups to assign a single configuration to many virtual networks at once. There are two kinds of members:

  • Static: You add/remove members to or from the group
  • Dynamic: You use a friendly wizard to define an Azure Policy to automatically find virtual networks and add/remove them for you. Keep in mind that Azure Policy might take a while to discover virtual networks because of how irregularly it runs. However, once added, the configuration deployment is immediately triggered by AVNM.

There are two kinds of members in a group:

  • Virtual networks: The virtual network and contained subnets are subject to the policy. Virtual networks may be static or dynamic members.
  • Subnets: Only the subnet is targeted by the configuration. Subnets are only static members.

Keep in mind that something like peering only targets a virtual network and User-Defined Routes target subnets.

I want to create a group to target all virtual networks in the dub01 scope. This group will be the basis for configuring any virtual network (except the hub) to be a secured spoke virtual network.

I created a Network Group called dub01spokes with a member type of Virtual Networks.

I then opened the Network Group and configured dynamic membership using this Azure Policy editor:

Any discovered virtual network that is not in the p-dub01 subscription and is in North Europe will be automatically added to this group.

The resulting policy is visible in Azure Policy with a category of Azure Virtual Network Manager.

IP Address Management

I’ve been using an approach of assigning a /16 to all virtual networks in a hub & spoke for years. This approach blocks the prefix in the organisation and guarantees IP capacity for all workloads in the future. It also simplifies routing and firewall rules. For example, a single route will be needed in other hubs if we need to interconnect multiple hub-and-spoke deployments.

I can reserve this capacity in AVNM IP Address Management. You can see that I have reserved 10.1.0.0/16 for dub01:

Every virtual network in dub01 will be created from this pool.

Creating The Hub Virtual Network

I’m going to save some time/money here by creating a skeleton hub. I won’t deploy a route NVA/Virtual Network Gateway so I won’t be able to share it later. I also won’t deploy a firewall, but the private address of the firewall will be 10.1.0.4.

I’m going to deploy a virtual network to use as the hub. I can use Bicep, Terraform, PowerShell, AZ CLI, or the Azure Portal. The important thing is that I refer to the IP address pool (above) when assigning an address prefix to the new virtual network. A check box called Allocate Using IP Address Pools opens a blade in the Azure Portal. Here you can select the Address Pool to take a prefix from for the new virtual network. All I have to do is select the pool and then use a subnet mask to decide how many addresses to take from the pool (/22 for my hub).

Note that the only time that I’ve had to ask a human for an address was when I created the pool. I can create virtual networks with non-conflicting addresses without any friction.

Create Connectivity Configuration

A Connectivity Configuration is a method of connecting virtual networks. We can implement:

  • Hub-spoke peering: A traditional peering between a hub and a spoke, where the spoke can use the Virtual Network Gateway/Azure Route Server in the hub.
  • Mesh: A mesh using a Connected Group (full mesh peering between all virtual networks). This is used to minimise latency between workloads with the understanding that a hub firewall will not have the opportunity to do deep inspection (performance over security).
  • Hub & spoke with mesh: The targeted VNets are meshed together for interconnectivity. They will route through the hub to communicate with the outside world.

I will create a Connectivity Configuration for a traditional hub-and-spoke network. This means that:

  • I don’t need to add code for VNet peering to my future templates.
  • No matter who deploys a VNet in the scope of dub01, they will get peered with the hub. My design will be implemented, regardless of their knowledge or their willingness to comply with the organisation’s policies.

I created a new Connectivity Configuration called dub01spokepeering.

In Topology I set the type to hub-and-spoke. I select my hub virtual network from the p-dub01 subscription as the hub Virtual Network. I then select my group of networks that I want to peer with the hub by selecting the dub01spokes group. I can configure the peering connections; here I should select Hub As Gateway – I don’t have a Virtual Network Gateway or an Azure Route Server in the hub, so the box is greyed out.

I am not enabling inter-spoke connectivity using the above configuration – AVNM has a few tricks, and this is one of them, where it uses Connected Groups to create a mesh of peering in the fabric. Instead, I will be using routing (later) via a hub firewall for secure transitive connectivity, so I leave Enable Connectivity Within Network Group blank.

Did you notice the checkbox to delete any pre-existing peering configurations? If it isn’t peered to the hub then I’m removing it so nobody uses their rights to bypass by networking design.

I completed the wizard and executed the deployment against the North Europe region. I know that there is nothing to configure, but this “cleans up” the GUI.

Create Routing Configuration

Folks who have heard me discuss network security in Azure should have learned that the most important part of running a firewall in Azure is routing. We will configure routing in the spokes using AVNM. The hub firewall subnet(s) will have full knowledge of all other networks by design:

  • Spokes: Using system routes generated by peering.
  • Remote networks: Using BGP routes. The VPN Local Network Gateway creates BGP routes in the Azure Virtual Networks for “static routes” when BGP is not used in VPN tunnels. Azure Route Server will peer with NVA routers (SD-WAN, for example) to propagate remote site prefixes using BGP into the Azure Virtual Networks.

The spokes routing design is simple:

  • A Route Table will be created for each subnet in the spoke Virtual Networks. This design for these free resources will allow customised routing for specific scenarios, such as VNet-integrated PaaS resources that require dedicated routes.
  • A single User-Defined Route (UDR) forces traffic leaving a spoke Virtual Network to pass through the hub firewall, where firewall rules will deny all traffic by default.
  • Traffic inside the Virtual Network will flow by default (directly from source to destination) and be subject to NSG rules, depending on support by the source and destination resource types.
  • The spoke subnets will be configured not to accept BGP routes from the hub; this is to prevent the spoke from bypassing the hub firewall when routing to remote sites via the Virtual Network Gateway/NVA.

I created a Routing Configuration called dub01spokerouting. In this Routing Configuration I created a Rule Collection called dub01spokeroutingrules.

A User-Defined Route, known as a Routing Rule, was created called everywhere:

The new UDR will override (deactivate) the System route to 0.0.0.0/0 via Internet and set the hub firewall as the new default next hop for traffic leaving the Virtual Network.

Here you can see the Routing Collection containing the Routing Rule:

Note that Enable BGP Route Propagation is left unchecked and that I have selected dub01spokes as my target.

And here you can see the new Routing Configuration:

Completed Configurations

I now have two configurations completed and configured:

  • The Connectivity Configuration will automatically peer in-scope Virtual Networks with the hub in p-dub01.
  • The Routing Configuration will automatically configure routing for in-scope Virtual Network subnets to use the p-dub01 firewall as the next hop.

Guess what? We have just created a Zero Trust network! All that’s left is to set up spokes with their NSGs and a WAF/WAFs for HTTPS workloads.

Deploy Spoke Virtual Networks

We will create spoke Virtual Networks from the IPAM block just like we did with the hub. Here’s where the magic is going to happen.

The evaluation-style Azure Policy assignments that are created by AVNM will run approximately every 30 minutes. That means a new Virtual Network won’t be discovered straight after creation – but they will be discovered not long after. A signal will be sent to AVNM to update group memberships based on added or removed Virtual Networks, depending on the scope of each group’s Azure Policy. Configurations will be deployed or removed immediately after a Virtual Network is added or removed from the group.

To demonstrate this, I created a new spoke Virtual Network in p-demo01. I created a new Virtual Network called p-demo01-net-vnet in the resource group p-demo01-net:

You can see that I used the IPAM address block to get a unique address space from the dub01 /16 prefix. I added a subnet called CommonSubnet with a /28 prefix. What you don’t see is that I configured the following for the subnet in the subnet wizard:

As you can see, the Virtual Network has not been configured by AVNM yet:

We will have to wait for Azure Policy to execute – or we can force a scan to run against the resource group of the new spoke Virtual Network:

  • Az CLI: az policy state trigger-scan –resource-group <resource group name>
  • PowerShell: Start-AzPolicyComplianceScan -ResourceGroupName <resource group name>

You could add a command like above into your deployment code if you wished to trigger automatic configuration.

This force process is not exactly quick either! 6 minutes after I forced a policy evaluation, I saw that AVNM was informed about a new Virtual Network:

I returned to AVNM and checked out the Network Groups. The dub01spokes group has a new member:

You can see that a Connectivity Configuration was deployed. Note that the summary doesn’t have any information on Routing Configurations – that’s an oversight by the AVNM team, I guess.

The Virtual Network does have a peering connection to the hub:

The routing has been deployed to the subnet:

A UDR has been created in the Route Table:

Over time, more Virtual Networks are added and I can see from the hub that they are automatically configured by AVNM:

Summary

I have done presentations on AVNM and demonstrated the above configurations in 40 minutes at community events. You could deploy the configurations in under 15 minutes. You can also create them using code! With this setup we can take control of our entire Azure networking deployment – and I didn’t even show you the Admin Rules feature for essential “NSG” rules (they aren’t NSG rules but use the same underlying engine to execute before NSG rules).

Want To Learn More?

Check out my company, Cloud Mechanix, where I share this kind of knowledge through:

  • Consulting services for customers and Microsoft partners using a build-with approach.
  • Custom-written and ad-hoc Azure training.

Together, I can educate your team and bring great Azure solutions to your organisation.

Azure Back To School 2024 – Govern Azure Networking Using Azure Virtual Network Manager

This post about Azure Virtual Network Manager is a part of the online community event, Azure Back To School 2024. In this post, I will discuss how you can use Azure Virtual Network Manager (AVNM) to centrally manage large numbers of Azure virtual networks in a rapidly changing/agile and/or static environment.

Challenges

Organisations around the globe have a common experience: dealing with a large number of networks that rapidly appear/disappear is very hard. If those networks are centrally managed then there is a lot of re-work. If the networks are managed by developers/operators then there is a lot of governance/verification work.

You need to ensure that networks are connected and are routed according to organisation requirements. Mandatory security rules must be put in place to either allow required traffic or to block undesired flows.

That wasn’t a big deal in the old days when there were maybe 3-4 huge overly trusting subnets in the data centre. Network designs change when we take advantage of the ability to transform when deploying to the cloud; we break those networks down into much smaller Azure virtual networks and implement micro-segmentation. This approach introduces simplified governance and a superior security model that can reliably build barriers to advanced persistent threats. Things sound better until you realise that there are no many more networks and subnets that there ever were in the on-premises data centre, and each one requires management.

This is what Azure Virtual Network Manager was created to help with.

Introducing Azure Virtual Network Manager

AVNM is not a new product but it has not gained a lot of traction yet – I’ll get into that a little later. Spoiler alert: things might be changing!

The purpose of AVNM is to centralise configuration of Azure virtual networks and to introduce some level of governance. Don’t get me wrong, AVNM does not replace Azure Policy. In fact, AVNM uses Azure Policy to do some of the leg work. The concept is to bring a network-specialist toolset to the centralised control of networks instead of using a generic toolset (Azure Policy) that can be … how do I say this politely … hmm … mysterious and a complete pain in the you-know-what to troubleshoot.

AVNM has a growing set of features to assist us:

  • Network groups: A way to identify virtual networks or subnets that we want to manage.
  • Connectivity configurations: Manage how multiple virtual networks are connected.
  • Security admin rules: Enforce security rules at the point of subnet connection (the NIC).
  • Routing configurations: Deploy user-defined routes by policy.
  • Verifier: Verify the networks can allow required flows.

Deployment Methodology

The approach is pretty simple:

  1. Identify a collection of networks/subnets you want to configure by creating a Network Group.
  2. Build a configuration, such as connectivity, security admin rules, or routing.
  3. Deploy the configuration targeting a Network Group and one or more Azure regions.

The configuration you build will be deployed to the network group members in the selected region(s).

Network Groups

Part of a scalable configuration feature of AVNM is network groups. You will probably build several or many network groups, each collecting a set of subnets or networks that have some common configuration requirement. This means that you can have ea large collection of targets for one configuration deployment.

Network Groups can be:

  • Static: You manually add specific networks to the group. This is ideal for a limited and (normally) unchanging set of targets to receive a configuration.
  • Dynamic: You will define a query based on one or more parameters to automatically discover current and future networks. The underlying mechanism that is used for this discovery is Azure Policy – the query is created as a policy and assigned to the scope of the query.

Dynamic groups are what you should end up using most of the time. For example, in a governed environment, Azure resources are often tagged. One can query virtual networks with specific tags and in specific Azure regions and have them automatically appear in a network group. If a developer/operator creates a new network, governance will kick in and tag those networks. Azure Policy will discover the networks and instantly inform AVNM that a new group member was discovered – any configurations applied to the group will be immediately deployed to the new network. That sounds pretty nice, right?

Connectivity Configurations

Before we continue, I want you to understand that virtual network peering is not some magical line or pipe. It’s simply an instruction to the Azure network fabric to say “A collection of NICs A can now talk with a collection of NICs B”.

We often want to either simplify the connectivity of networks or to automate desired connectivity. Doing this at scale can be done using code, but doing it in an agile environment requires trust. Failure usually happens between the chair and the keyboard, so we want to automate desired connectivity, especially when that connectivity enables integration or plays a role in security/compliance.

Connectivity Configurations enable three types of network architecture:

  • Hub-and-spoke: This is the most common design I see being required and the only one I’ve ever implemented for mid-large clients. A central regional hub is deployed for security/transit. Workloads/data are placed in spokes and are peered only with the hub (the network core). A router/firewall is normally (not always) the next hop to leave a spoke.
  • Full mesh: Every virtual network is connected directly to every other virtual network.
  • Hub-and-spoke with mesh: All spokes are connected to the hub. All spokes are connected to each other. Traffic to/from the outside world must go through the hub. Traffic to other spokes goes directly to the destination.

Mesh is interesting. Why would one use it? Normally one would not – a firewall in the hub is a desirable thing to implement micro-segmentation and advanced security features such as Intrusion Detection and Prevention System (IDPS). But there are business requirements that can override security for limited scenarios. Imagine you have a collection of systems that must integrate with minimised latency. If you force a hop through a firewall then latency will potentially be doubled. If that firewall is deemed an unnecessary security barrier for these limited integrations by the business, then this is a scenario where a full mesh can play a role.

This is why I started off discussing peering. Whether a system is in the same subnet/network or not, it doesn’t matter. The physical distance matters, not the virtual distance. Peering is not a cable or a connection – it’s just an instruction.

However, Virtual Network Peering is not even used in mesh! It’s something different that can handle the scale of many virtual networks being interconnected called a Connected Group. One configuration inter-connects all the virtual networks without having to create 1-1 peerings between many virtual networks.

A very nice option with this configuration is the ability to automatically remove pre-existing peering connections to clean up unwanted previous designs.

Security Admin Rules

What is a Network Security Group (NSG) rule? It’s a Hyper-V port ACL that is implemented at the NIC of the virtual machine (yours or in the platform hosting your PaaS service). The subnet or NIC association is simply a scaling/targeting system; the rules are always implemented at the NIC where the virtual switch port is located.

NSGs do not scale well. Imagine you need to deploy a rule to all subnets/NICs to allow/block a flow. How many edits will you need to do? And how much time will you waste on prioritising rules to ensure that your rule is processed first?

Security Admin Rules are also implemented using Port ACLs but they are always processed first. You can create a rule or a set or rules and deploy it to a Network Group. All NICs will be updated and your rules will always be processed first.

Tip: Consider using VNet Flow Logs to troubleshoot Security Admin Rules.

Routing Configurations

This is one of the newer features in AVNM and was a technical blocker for me until it was introduced. Routing plays a huge role in a security design, forcing traffic from the spoke through a firewall in the hub. Typically, in VNet-based hub deployments, we place one user-defined route (UDR) in each subnet to make that flow happen. That doesn’t scale well and relies on trust. Some have considered using BGP routing to accomplish this but that can be easily overridden after quite a bit of effort/cost to get the route propagated in the first place.

AVNM introduced a preview to centrally configure UDRs and deploy them to Network Groups with just a few clicks. There are a few variations on this concept to decide how granular you want the resulting Route Tables to be:

  • One is shared with virtual networks.
  • One is shared with all subnets in a virtual network.
  • One per subnet.

Verification

This is a feature that I’m a little puzzled about and I am left wondering if it will play a role in some other future feature. The idea is that you can test your configurations to ensure that they are working. There is a LOT of cross-over with Network Watcher and there is a common limitation: it only works with virtual machines.

What’s The Bad News?

Once routing configurations go generally available, I would want to use AVNM in every deployment that I do in the future. But there is a major blocker: pricing. AVNM is priced per subscription at $73/month. For those of you with a handful of subscriptions, that’s not much at all. But for those of us who saw that the subscription is a natural governance boundary and use LOTS of subscriptions (like in Microsoft Cloud Adoption Framework), this is a huge deal – it can make AVNM the most expensive thing we do in Azure!

The good news is that the message has gotten through to Microsoft and some folks in Azure networking have publicly commented that they are considering changes to the way that the pricing of AVNM is calculated.

The other bit bad news is an oldie: Azure Policy. Dynamic network group membership is built by Azure Policy. If a new virtual network is created by a developer, it can be hours before policy detects it and informs AVNM. In my testing, I’ve verified that once AVNM sees the new member, it triggers the deployment immediately, but the use of Azure Policy does create latency, enabling some bad practices to be implemented in the meantime.

Summary

I was a downer on AVNM early on. But recent developments and some of the ideas that the team is working on have won me over. The only real blocker is pricing, but I think that the team is serious about fixing that. I stated earlier that AVNM hasn’t gotten a lot of traction. I think that this should change once pricing is fixed and routing configurations are GA.

I recently demonstrated using AVNM to build out the connectivity and routing of a hub-and-spoke with micro-segmentation at a conference. Using Azure Portal, the entire configuration probably took less than 10 minutes. Imagine that: 10 minutes to build out your security and compliance model for now and for the future.