Lab 02 – Network Security Groups & Application Security Groups

Objectives

1. Create and associate NSGs at subnet and NIC level
2. Understand rule priority, evaluation order, and default rules
3. Use Application Security Groups (ASGs) to group VMs for rule targeting
4. Use network diagnostics tools: effective security rules, IP flow verify

Prerequisites

1. A VNet with at least one subnet (reuse Lab 12's vnet-hub, or create new)
2. Signed in at portal.azure.com

Estimated time

35 minutes

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Part 1 – Setup

1. Search for Resource groups > Create. Name: rg-az104-lab13,

region: East US. Review + create > Create.

1. Search for Virtual networks > Create. Resource group:

rg-az104-lab13, Name: vnet-lab13, Address space: 10.60.0.0/16.

Subnets: subnet-web with 10.60.1.0/24. Create.

1. Create two VMs:

- Virtual machines > Create > vm-web01, Ubuntu 22.04 LTS,

Standard_B1s, vnet-lab13/subnet-web. Create.

- Repeat for vm-web02.

Part 2 – Create an NSG and rules

1. Search for Network security groups > Create.

- Resource group: rg-az104-lab13

- Name: nsg-web

- Region: East US

- Create.

1. Go to nsg-web > Inbound security rules > + Add.

1. Create rule 1: Allow SSH from your IP only

- Source: IP addresses, enter your public IP (e.g., 203.0.113.0/32)

- Source port ranges:

- Destination: Any

- Service: SSH (auto-fills port 22)

- Protocol: TCP

- Action: Allow

- Priority: 100

- Name: Allow-SSH-MyIP

- Add.

1. Create rule 2: Allow HTTP from anywhere

- Source: Any

- Service: HTTP (port 80)

- Action: Allow

- Priority: 110

- Name: Allow-HTTP

- Add.

1. (Optional) Create rule 3: Deny all (illustrative)

- Source: Any

- Destination: Any

- Action: Deny

- Priority: 4096

- Name: Deny-All-Inbound

- Add

Part 3 – Associate NSG to subnet

1. Go to nsg-web > Subnets > + Associate.
2. Select vnet-lab13 / subnet-web > OK.

The NSG is now applied at the subnet level, affecting all VMs in that subnet.

Part 4 – Application Security Groups

1. Search for Application security groups > Create.

- Resource group: rg-az104-lab13

- Name: asg-webservers

- Region: East US

- Create.

1. Add VM NICs to the ASG:

- Go to vm-web01 > Networking > select the NIC (e.g.,

vm-web01) > Application security groups > Configure

application security group memberships > add asg-webservers > Save.

- Repeat for vm-web02.

1. Create an NSG rule targeting the ASG:

- nsg-web > Inbound security rules > + Add.

- Source: Application security group: asg-webservers

- Destination: Application security group: asg-webservers

- Service: HTTPS (port 443)

- Action: Allow

- Priority: 120

- Name: Allow-HTTPS-To-WebASG

- Add.

This rule allows HTTPS traffic between members of the asg-webservers group

without needing to hardcode IP addresses.

Part 5 – Effective security rules & IP flow verify

1. Go to vm-web01 > Networking > select the NIC > Network Watcher

(or search Network Watcher) > Effective security rules to see the

merged subnet + NIC-level rules.

1. Network Watcher > IP flow verify (under Network diagnostic tools):

- VM: vm-web01

- Direction: Inbound

- Protocol: TCP

- Local IP/port: 10.60.1.4:80 (or the actual private IP)

- Remote IP/port: 10.60.1.100:12345 (a test IP)

- Check — should show Allow (matching the HTTP rule).

1. Repeat with port 22 from a non-allowed source IP — expect Deny.

Part 6 – Rule priority & evaluation order

Discuss (no need to execute):

1. Rules evaluated in priority order (100–4096, lower number = higher

priority); first match wins.

1. Default rules (priority 65000+): AllowVnetInBound, AllowAzureLoadBalancerInBound,

DenyAllInBound (and outbound equivalents) — cannot be deleted, but can be

overridden by lower-numbered custom rules.

1. NSGs can apply at subnet and/or NIC level — traffic must pass both

if both exist.

Validation

1. [ ] NSG nsg-web associated with subnet-web
2. [ ] SSH allowed only from your IP; HTTP allowed from any source
3. [ ] ASG asg-webservers contains both VM NICs and is referenced by an NSG rule
4. [ ] Effective security rules shows merged subnet + NIC rules
5. [ ] IP flow verify confirms expected allow/deny for sample traffic

Cleanup

1. Resource groups > select rg-az104-lab13 > Delete resource group**.

Exam Tips

1. Lowest priority number wins (evaluated first); once a rule matches, evaluation stops.
2. NSGs are stateful — an allowed inbound flow's response traffic is automatically allowed outbound (and vice versa).
3. ASGs let you write NSG rules based on application roles (e.g., "WebServers") instead of hardcoded IPs — simplifies rule management as VMs scale.
4. "Effective security rules" merges subnet-level + NIC-level NSGs — exam scenarios often ask which rule "wins" when both exist.