See explanation below. Explanation Step 1: Click New found on the upper left-hand corner of the Azure portal. Step 2: Select Networking and then select Application Gateway in the Featured list. Step 3: Enter these values for the application gateway: appgw1015 - for the name of the application gateway. SKU Size: Standard_V2 The new SKU [Standard_V2] offers autoscaling and other critical performance enhancements. Step 4: Accept the default values for the other settings and then click OK. Step 5: Click Choose a virtual network, and select subnet0. References: https://docs.microsoft.com/en-us/azure/application-gateway/application-gateway-create-gateway-portal