In Azure public cloud, a virtual network (VNet) is a representation of your own network in the cloud. It allows you to securely connect Azure resources and extend your on-premises network to the cloud. A VNet is isolated and provides network-level segmentation and security. It also enables you to control inbound and outbound traffic using network security groups and virtual network service endpoints.

Peering is a feature in Azure that allows you to connect virtual networks together, both within the same region or across different regions. This enables resources in different virtual networks to communicate with each other using private IP addresses. There are two types of peering available in Azure:

1. VNet peering: This allows you to connect virtual networks within the same region or different regions, as long as they belong to the same Azure subscription or different subscriptions within the same Azure Active Directory tenant. VNet peering is transitive, meaning that if VNet A is peered with VNet B, and VNet B is peered with VNet C, then VNet A can communicate with VNet C directly, without the need for a separate peering.
2. Global VNet peering: This allows you to connect virtual networks across different Azure regions, regardless of whether they belong to the same subscription or Azure Active Directory tenant. Global VNet peering is also transitive, enabling communication between virtual networks in different regions.

Peering in Azure provides several benefits, including:

• Reduced latency: With peering, you can achieve lower latency by establishing direct connections between virtual networks instead of going through public internet gateways.
• Improved network performance: Peered virtual networks can communicate with each other at higher network speeds compared to traffic going through gateways.
• Simplified network architecture: Peering allows you to create a flat network topology by connecting virtual networks together, simplifying network management and reducing the need for complex routing configurations.
• Enhanced security: Peering enables secure communication between virtual networks using private IP addresses, ensuring that traffic remains within the Azure backbone network and is not exposed to the public internet.

Overall, virtual network and peering in Azure public cloud provide powerful capabilities for building and connecting networks in a secure and scalable manner..