This Azure networking tutorial explains virtual networks (VNets), subnets, network security groups (NSGs), and application security groups (ASGs). VNets isolate customer resources, subnets logically segment VNets for security, NSGs control network access, and ASGs enhance NSG capabilities for granular control. The video uses real-world examples to clarify these concepts. This segment highlights a common challenge faced by learners when grasping Azure networking concepts (virtual networks, subnets, security groups). The speaker emphasizes the complexity and proposes a solution using real-world analogies to make these concepts more accessible and memorable. This segment explains the fundamental concept of virtual networks (VNets) in Azure and other cloud providers (like AWS VPC). It uses a compelling scenario of two companies sharing the same physical server to illustrate the security risks without VNets, effectively demonstrating the need for logical network isolation. This segment delves into the practical aspects of designing VNets, focusing on determining the appropriate size (using CIDR notation) and the importance of logically dividing a VNet into subnets for better organization and security. It also touches upon the different types of applications (web, business logic, databases) and their varying security needs. This segment explains the roles of Network Security Groups (NSGs) and Application Security Groups (ASGs) in securing Azure resources. It clarifies how NSGs provide basic security rules at the subnet level, while ASGs offer more granular control by allowing the creation of groups of applications for more precise security policies.