How to Create a Virtual Network in Windows Azure

To create a cloud-only virtual network: 
1.      Log in to the Windows Azure Management Portal.
2.      In the lower left-hand corner of the screen, click New. In the navigation pane, click Network Services, and then click Virtual Network. Click Custom Create to begin the configuration wizard.
3.      On the Virtual Network Details page, enter the following information, and then click the next arrow on the lower right.
o    Name - Name your virtual network. Type XXXLabnetYYY.
o    Affinity Group - From the drop-down list, select Create a new affinity group. Affinity groups are a way to physically group Windows Azure services together at the same data center to increase performance. Only one virtual network can be assigned an affinity group.
o    Region - From the drop-down list, select the desired region. Your virtual network will be created at a datacenter located in the specified region.
o    Affinity Group Name - Name the new affinity group. Type XXXGroupYYY.

4.      On the DNS Servers and VPN Connectivity page, enter the following information, and then click the next arrow on the lower right.
o    DNS Servers-Optional - Enter the DNS server name and IP address that you want to use.
o    Select XXXlabdnsYYY.
o    Do not select the checkbox for point-to-site or site to site connectivity. The virtual network we are creating in this tutorial is not designed for cross-premises connectivity.

5.      On the Virtual Network Address Spaces page, enter the following information and then click the checkmark on the lower right to configure your network. Address space must be a private address range, specified in CIDR notation 10.0.0.0/8, 172.16.0.0/12, or 192.168.0.0/16.
o    Address Space: Click CIDR in the upper right corner, then enter the following:
§  Starting IP: 10.0.0.0
§  CIDR: /20
o    Add subnet: Enter the following:
§  Subnet-1  with the Starting IP 10.0.0.0/24.
§  Verify that you now have subnets created and then click the checkmark on the lower right to create your virtual network.
6.      After clicking the checkmark, your virtual network will begin to create. When your virtual network has been created, you will see Created listed under Status on the networks page in the Management Portal.

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