Service chaining Service chaining enables you to direct traffic from one virtual network to a virtual appliance or gateway in a peered network through user-defined routes. To enable service chaining, configure user-defined routes that point to virtual machines in peered virtual networks as the next hop IP address. User-defined routes could also point to virtual network gateways to enable service chaining. You can deploy hub-and-spoke networks, where the hub virtual network hosts infrastructure components such as a network virtual appliance or VPN gateway. All the spoke virtual networks can then peer with the hub virtual network. Traffic flows through network virtual appliances or VPN gateways in the hub virtual network. Reference: https://learn.microsoft.com/en-us/azure/virtual-network/virtual-network-peering-overview#service-chaining