Peering
Example 1 - Not possible
This example demonstrates that it is not possible to do VNET peering between overlapping CIDR addresses.
Based on the follow setup:
az group create -l 'brazilsouth' -n 'rg-az104'
az network vnet create -g 'rg-az104' -n 'VNet1' --address-prefixes '10.11.0.0/16'
az network vnet subnet create -g 'rg-az104' --vnet-name 'VNet1' -n 'internal' --address-prefixes '10.11.0.0/17'
az network vnet create -g 'rg-az104' -n 'VNet2' --address-prefixes '10.11.0.0/17'
az network vnet subnet create -g 'rg-az104' --vnet-name 'VNet1' -n 'internal' --address-prefixes '10.11.0.0/25'
It is not possible to peer the VNETs. This operation will fail.
az network vnet peering create -g 'rg-az104' -n 'peering' \
--vnet-name 'VNet1' \
--remote-vnet 'VNet2' \
--allow-vnet-access
Example 2 - Possible
In this other example it IS possible to peer the VNets:
az network vnet create -g 'rg-az104' -n 'VNet1' --address-prefixes '10.10.10.0/24'
az network vnet create -g 'rg-az104' -n 'VNet2' --address-prefixes '10.10.128.0/17'
az network vnet peering create -g 'rg-az104' -n 'peering' \
--vnet-name 'VNet1' \
--remote-vnet 'VNet2' \
--allow-vnet-access