NSG rules (inbound, outbound) in Azure - Mini Project: Build & Apply

Create Azure NSG Rules for Inbound and Outbound Traffic

📖 Scenario: You are setting up network security for a small Azure virtual network. You need to control which traffic can enter and leave your network using Network Security Group (NSG) rules.This is like setting up rules for who can enter your house and who can leave, to keep your home safe.

🎯 Goal: Build an Azure Network Security Group (NSG) with specific inbound and outbound rules to allow HTTP traffic in and block all other inbound traffic, and allow all outbound traffic.

📋 What You'll Learn

Create an NSG resource named myNSG

Add an inbound rule to allow TCP traffic on port 80 from any source

Add an inbound rule to deny all other inbound traffic

Add an outbound rule to allow all outbound traffic

💡 Why This Matters

🌍 Real World

Network Security Groups are used in Azure to control traffic flow to and from virtual machines and subnets, protecting resources from unwanted access.

💼 Career

Understanding NSG rules is essential for cloud engineers and network administrators to secure cloud infrastructure effectively.

1

Create the NSG resource

Create an Azure Network Security Group resource named myNSG with empty security rules.

Azure

resource "azurerm_network_security_group" "myNSG" {
  name                = "myNSG"
  location            = "eastus"
  resource_group_name = "myResourceGroup"

  # Your code here
}

Hint

Start by defining the NSG resource with the exact name myNSG and an empty list for security_rule.

2

Add inbound rule to allow HTTP traffic

Add a security rule inside myNSG to allow inbound TCP traffic on port 80 from any source. Name the rule Allow-HTTP-Inbound with priority 100.

Azure

resource "azurerm_network_security_group" "myNSG" {
  name                = "myNSG"
  location            = "eastus"
  resource_group_name = "myResourceGroup"

  security_rule = [
    # Your code here
  ]
}

Hint

Inside security_rule, add a rule dictionary with the exact properties and values to allow inbound TCP traffic on port 80.

3

Add inbound rule to deny all other inbound traffic

Add a second security rule inside myNSG to deny all other inbound traffic. Name it Deny-All-Inbound with priority 200.

Azure

resource "azurerm_network_security_group" "myNSG" {
  name                = "myNSG"
  location            = "eastus"
  resource_group_name = "myResourceGroup"

  security_rule = [
    {
      name                       = "Allow-HTTP-Inbound"
      priority                   = 100
      direction                  = "Inbound"
      access                     = "Allow"
      protocol                   = "Tcp"
      source_port_range          = "*"
      destination_port_range     = "80"
      source_address_prefix      = "*"
      destination_address_prefix = "*"
    },
    # Your code here
  ]
}

Hint

Add a second rule dictionary to deny all inbound traffic except the allowed HTTP rule.

4

Add outbound rule to allow all outbound traffic

Add a third security rule inside myNSG to allow all outbound traffic. Name it Allow-All-Outbound with priority 300 and direction Outbound.

Azure

resource "azurerm_network_security_group" "myNSG" {
  name                = "myNSG"
  location            = "eastus"
  resource_group_name = "myResourceGroup"

  security_rule = [
    {
      name                       = "Allow-HTTP-Inbound"
      priority                   = 100
      direction                  = "Inbound"
      access                     = "Allow"
      protocol                   = "Tcp"
      source_port_range          = "*"
      destination_port_range     = "80"
      source_address_prefix      = "*"
      destination_address_prefix = "*"
    },
    {
      name                       = "Deny-All-Inbound"
      priority                   = 200
      direction                  = "Inbound"
      access                     = "Deny"
      protocol                   = "*"
      source_port_range          = "*"
      destination_port_range     = "*"
      source_address_prefix      = "*"
      destination_address_prefix = "*"
    },
    # Your code here
  ]
}

Hint

Add a third rule dictionary to allow all outbound traffic with the exact properties.

Practice

1. What is the primary purpose of an Azure Network Security Group (NSG)?

easy

A. To store data securely in the cloud

B. To manage user identities and access

C. To control inbound and outbound network traffic to resources

D. To monitor application performance

Solution

1. Step 1: Understand NSG function

   NSGs are designed to filter network traffic to and from Azure resources.

2. Step 2: Compare options

   Only To control inbound and outbound network traffic to resources describes controlling inbound and outbound traffic, which matches NSG's role.

3. Final Answer:

   To control inbound and outbound network traffic to resources -> Option C

4. Quick Check:

   NSG controls traffic = B [OK]

Hint: NSG controls traffic flow, not data or users [OK]

Common Mistakes:

• Confusing NSG with storage or identity services
• Thinking NSG monitors performance
• Assuming NSG manages user access

2. Which of the following is the correct way to specify an inbound NSG rule to allow TCP traffic on port 80?

easy

A. Priority: 100, Direction: Inbound, Protocol: TCP, Port: 80, Action: Allow

B. Priority: 100, Direction: Inbound, Protocol: UDP, Port: 80, Action: Allow

C. Priority: 100, Direction: Outbound, Protocol: TCP, Port: 80, Action: Allow

D. Priority: 100, Direction: Inbound, Protocol: TCP, Port: 443, Action: Allow

Solution

1. Step 1: Identify direction and protocol

   The question asks for inbound TCP traffic on port 80, so Direction must be Inbound and Protocol TCP.

2. Step 2: Check port and action

   Port must be 80 and Action Allow to permit traffic.

3. Final Answer:

   Priority: 100, Direction: Inbound, Protocol: TCP, Port: 80, Action: Allow -> Option A

4. Quick Check:

   Inbound TCP port 80 allow = C [OK]

Hint: Inbound + TCP + port 80 + Allow = correct rule [OK]

Common Mistakes:

• Using outbound direction instead of inbound
• Using UDP protocol instead of TCP
• Specifying wrong port number

3. Given these NSG rules applied in order of priority:
1) Priority 100: Allow inbound TCP port 22 from 10.0.0.0/24
2) Priority 200: Deny inbound TCP port 22 from any
What will happen if a connection attempt comes from IP 10.0.0.5 on port 22?

medium

A. The connection is allowed because allow rule has higher priority

B. The connection is allowed because deny rules do not apply to private IPs

C. The connection is denied because default deny applies

D. The connection is denied because deny rule has higher priority

Solution

1. Step 1: Understand rule priority

   Lower priority number means higher priority. Priority 100 rule is evaluated before 200.

2. Step 2: Evaluate matching rules

   IP 10.0.0.5 matches allow rule at priority 100, so connection is allowed before deny rule is checked.

3. Final Answer:

   The connection is allowed because allow rule has higher priority -> Option A

4. Quick Check:

   Lower priority allow beats higher priority deny = D [OK]

Hint: Lower priority number rules apply first [OK]

Common Mistakes:

• Assuming deny always overrides allow
• Ignoring rule priority order
• Thinking private IPs bypass deny rules

4. You created an NSG rule to allow outbound HTTPS traffic on port 443, but traffic is still blocked. Which of the following is the most likely cause?

medium

A. The source IP address range is set to 0.0.0.0/0

B. The NSG rule is set to inbound instead of outbound

C. The protocol is set to UDP instead of TCP

D. There is a higher priority outbound deny rule blocking port 443

Solution

1. Step 1: Check rule priority and direction

   If traffic is blocked despite allow rule, a deny rule with higher priority likely blocks it.

2. Step 2: Evaluate other options

   Inbound vs outbound mismatch or protocol mismatch would cause no effect, but the question states rule exists for outbound HTTPS.

3. Final Answer:

   There is a higher priority outbound deny rule blocking port 443 -> Option D

4. Quick Check:

   Higher priority deny blocks traffic despite allow = A [OK]

Hint: Check for higher priority deny rules first [OK]

Common Mistakes:

• Ignoring rule priority order
• Confusing inbound and outbound directions
• Assuming source IP 0.0.0.0/0 blocks traffic

5. You want to allow inbound HTTP traffic only from a specific IP range 192.168.1.0/24 and deny all other inbound HTTP traffic. Which NSG rule configuration achieves this?

hard

A. Priority 100: Deny inbound TCP port 80 from any; Priority 200: Allow inbound TCP port 80 from 192.168.1.0/24

B. Priority 100: Allow inbound TCP port 80 from 192.168.1.0/24; Priority 200: Deny inbound TCP port 80 from any

C. Priority 100: Allow inbound TCP port 80 from any; Priority 200: Deny inbound TCP port 80 from 192.168.1.0/24

D. Priority 100: Deny inbound TCP port 80 from 192.168.1.0/24; Priority 200: Allow inbound TCP port 80 from any

Solution

1. Step 1: Allow specific IP range first

   Allow rule with higher priority (lower number) must permit traffic from 192.168.1.0/24.

2. Step 2: Deny all other IPs

   Deny rule with lower priority blocks all other inbound HTTP traffic.

3. Final Answer:

   Priority 100: Allow inbound TCP port 80 from 192.168.1.0/24; Priority 200: Deny inbound TCP port 80 from any -> Option B

4. Quick Check:

   Allow specific IP first, then deny others = A [OK]

Hint: Allow specific IP with lower priority number, deny others after [OK]

Common Mistakes:

• Placing deny rule before allow rule
• Allowing all IPs instead of specific range
• Using wrong priority numbers