+|Source or destination| Any, or an individual IP address, classless inter-domain routing (CIDR) block (10.0.0.0/24, for example), service tag, or application security group. If you specify an address for an Azure resource, specify the private IP address assigned to the resource. Network security groups are processed after Azure translates a public IP address to a private IP address for inbound traffic, and before Azure translates a private IP address to a public IP address for outbound traffic. Fewer security rules are needed when you specify a range, a service tag, or application security group. The ability to specify multiple individual IP addresses and ranges (you can't specify multiple service tags or application groups) in a rule is referred to as [augmented security rules](#augmented-security-rules). Augmented security rules can only be created in network security groups created through the Resource Manager deployment model. You can't specify multiple IP addresses and IP address ranges in network security groups created through the classic deployment model. </br> If source points to the subnet 10.0.1.0/24 (where VM1 is located) and destination points to the subnet 10.0.2.0/24 (where VM2 is located), this indicates the purpose of NSG is to filter network traffic for VM2 and the NSG is associated with the network interface of VM2.|
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