diff --git a/CHAP02/main.tf b/CHAP02/main.tf
new file mode 100644
index 0000000..89e1645
--- /dev/null
+++ b/CHAP02/main.tf
@@ -0,0 +1,90 @@
+resource "azurerm_resource_group" "rg" {
+  name     = "bookRg"
+  location = "West Europe"
+
+  tags = {
+    environment = "Terraform Azure"
+  }
+}
+
+resource "azurerm_virtual_network" "vnet" {
+  name                = "book-vnet"
+  location            = "West Europe"
+  address_space       = ["10.0.0.0/16"]
+  resource_group_name = azurerm_resource_group.rg.name
+}
+
+resource "azurerm_subnet" "subnet" {
+  name                 = "book-subnet"
+  virtual_network_name = azurerm_virtual_network.vnet.name
+  resource_group_name  = azurerm_resource_group.rg.name
+  address_prefixes       = ["10.0.10.0/24"]
+}
+
+resource "azurerm_network_interface" "nic" {
+  name                = "book-nic"
+  location            = "West Europe"
+  resource_group_name = azurerm_resource_group.rg.name
+
+  ip_configuration {
+    name                          = "bookipconfig"
+    subnet_id                     = azurerm_subnet.subnet.id
+    private_ip_address_allocation = "Dynamic"
+    public_ip_address_id          = azurerm_public_ip.pip.id
+  }
+}
+
+resource "azurerm_public_ip" "pip" {
+  name                         = "book-ip"
+  location                     = "West Europe"
+  resource_group_name          = azurerm_resource_group.rg.name
+#  public_ip_address_allocation = ""
+  domain_name_label            = "bookdevops"
+  allocation_method = "Dynamic"
+}
+
+resource "azurerm_storage_account" "stor" {
+  name                     = "bookstor"
+  location                 = "West Europe"
+  resource_group_name      = azurerm_resource_group.rg.name
+  account_tier             = "Standard"
+  account_replication_type = "LRS"
+}
+
+resource "azurerm_virtual_machine" "vm" {
+  name                  = "bookvm"
+  location              = "West Europe"
+  resource_group_name   = azurerm_resource_group.rg.name
+  vm_size               = "Standard_DS1_v2"
+  network_interface_ids = [azurerm_network_interface.nic.id]
+
+  storage_image_reference {
+    publisher = "Canonical"
+    offer     = "UbuntuServer"
+    sku       = "16.04-LTS"
+    version   = "latest"
+  }
+
+  storage_os_disk {
+    name              = "book-osdisk"
+    managed_disk_type = "Standard_LRS"
+    caching           = "ReadWrite"
+    create_option     = "FromImage"
+  }
+
+  os_profile {
+    computer_name  = "VMBOOK"
+    admin_username = "admin"
+    admin_password = "book123*"
+  }
+
+  os_profile_linux_config {
+    disable_password_authentication = false
+  }
+
+  boot_diagnostics {
+    enabled     = true
+    storage_uri = azurerm_storage_account.stor.primary_blob_endpoint
+  }
+}
+
diff --git a/CHAP02/provider.tf b/CHAP02/provider.tf
new file mode 100644
index 0000000..2b39ad2
--- /dev/null
+++ b/CHAP02/provider.tf
@@ -0,0 +1,3 @@
+provider "azurerm" {
+features {}
+}
diff --git a/CHAP02/versions.tf b/CHAP02/versions.tf
new file mode 100644
index 0000000..2b50674
--- /dev/null
+++ b/CHAP02/versions.tf
@@ -0,0 +1,8 @@
+terraform {
+  required_version = ">= 0.13"
+  required_providers {
+    azurerm = {
+      source = "hashicorp/azurerm"
+    }
+  }
+}
\ No newline at end of file