Now that we've gone through the configuration process for the on-premises VPN device, we are going to create a VNet. To do so, perform the following steps:

1. Navigate to Azure portal by opening https://portal.azure.com/.
2. Select Create a resource | Networking | Virtual network.
3. In the Create virtual network blade, add the following values:
   • Name: PacktVPNVNet.
   • Address space: 172.17.0.0/16.
   • Subscription: Pick a subscription.
   • Resource group: Create a new resource group and name it PacktVPNResourceGroup.
   • Location: East US.
   • Subnet name: Frontend.
   • Address range: 172.17.0.0/24.
4. Click Create to create the VNet.
5. Now, we need to create a Gateway subnet that contains the reserved IP addresses that will be used by the virtual network gateway services. Open the VNet resource and, under Settings, click Subnets and then click + Gateway subnet, which can be found in the top menu.
   
6. In the Add subnet blade, adjust the address range to 172.17.255.0/27.
7. Click OK.