The image shows a local VNet topology within a single Azure region. The Azure region hosts a single VNet (10.0.28.0/22) which hosts 3 subnets:

• Application X subnet, 10.0.29.0/24, hosts an Application X VM
• Application Y subnet, 10.0.30.0/28 hosts an Application Y VM
• Client subnet (delegated) 10.0.29.0/24 hosts Oracle Database@Azure