You are planning an Azure deployment that will contain three virtual networks in the East US Azure region as shown in the following table. A Site-to-Site VPN will connect Vnet1 to your company's on-pr

VNet-to-VNet VPN connections would require deploying separate VPN gateways in Vnet2 and Vnet3, incurring additional costs for each gateway and potentially more complex management compared to simple peering with transit.

VNet peering enables low-latency, high-bandwidth connectivity between virtual networks within the same region. By peering Vnet2 and Vnet3 with Vnet1 and enabling gateway transit on Vnet1, Vnet2 and Vnet3 can utilize Vnet1's VPN gateway to access the on-premises network without deploying additional, costly VPN gateways in each VNet.

Service endpoints are used to secure and optimize connectivity to specific Azure PaaS services like Azure Storage or Azure SQL Database, not to connect virtual networks to each other or to an on-premises network.

Route tables are used to define custom routing rules for traffic within and between subnets or to specific next hops. While they are crucial for directing traffic, they are not the primary mechanism for establishing the underlying connectivity between virtual networks or enabling gateway transit; peering provides that foundational connectivity.