Answer Description

Virtual machines running as a guest can be configured with internal and external networking options. Internal will allow the guest VM to talk to other VMs and the host but not the internet, which was not a requirement in this case.

Wikipedia

In computing, network virtualization is the process of combining hardware and software network resources and network functionality into a single, software-based administrative entity, a virtual network. Network virtualization involves platform virtualization, often combined with resource virtualization. Network virtualization is categorized as either external virtualization, combining many networks or parts of networks into a virtual unit, or internal virtualization, providing network-like functionality to software containers on a single network server. In software testing, software developers use network virtualization to test software which are under development in a simulation of the network environments in which the software is intended to operate. As a component of application performance engineering, network virtualization enables developers to emulate connections between applications, services, dependencies, and end users in a test environment without having to physically test the software on all possible hardware or system software. The validity of the test depends on the accuracy of the network virtualization in emulating real hardware and operating systems.