Explanation: Box 1: add an address space As 192.168.1.0/24 is outside of the configured address space of 10.2.0.0/16, the answer is to create an address space. Box 2: add a subnet As 10.2.1.0/24 subnet doesn't exist (only 10.2.0.0/24) the answer is to create a subnet. Reference: https://docs.microsoft.com/en-us/office365/enterprise/designing-networking-for-microsoft-azure- iaas