AWS Networking Decision Guide: Transit Gateway vs VPC Peering vs PrivateLink vs VPC Lattice vs Cloud WAN
AWS networking has five ways to connect VPCs and services. They're not interchangeable — each solves a different connectivity problem at a different cost point. Using Transit Gateway where VPC Peering suffices wastes money. Using VPC Peering where Transit Gateway is needed creates an unmanageable mesh. This guide maps each connectivity option to its sweet spot, compares cost and complexity, and…
AWS offers five distinct networking options for connecting Virtual Private Clouds (VPCs) and services: VPC Peering, Transit Gateway, PrivateLink, VPC Lattice, and Cloud WAN. Each has its own strengths and is suited for different scenarios.
VPC Peering provides a direct, point-to-point network connection between two VPCs. This option is ideal when connecting 2-3 VPCs with full network connectivity required, at a low cost. However, it becomes impractical when dealing with 5+ VPCs due to the exponentially growing number of peering connections.
Transit Gateway acts as a hub-and-spoke network architecture, connecting multiple VPCs, VPN connections, and Direct Connect gateways in a central hub. It is suitable for networks with 5+ VPCs, centralized networking, on-premises connectivity, network segmentation, and multi-account landing zone deployments. Transit Gateway's cost is $0.05 per attachment per hour plus $0.02 per GB processed.
PrivateLink enables service exposure without joining the network, exposing a specific service to other VPCs via an interface endpoint. This option is beneficial for exposing a single service to other VPCs, offering cross-account and cross-region connectivity, and maintaining security as consumers only see the endpoint ENI. PrivateLink costs $0.01 per hour per endpoint plus $0.01 per GB processed.
VPC Lattice is a service-to-service mesh that provides service discovery, traffic management, and IAM-based authentication between services across VPCs and accounts. It is a good fit for application-layer networking, service discovery, and IAM-based security. VPC Lattice costs $0.01 per hour per endpoint plus $0.01 per GB processed.
Cloud WAN connects on-premises networks to AWS via a hybrid of VPN and Direct Connect, forming a global multi-region network. This option is ideal for connecting on-premises infrastructure to AWS, while allowing for policy-based segmentation and global reach. Cloud WAN comes with a cost of $0.01 per hour per AWS Direct Connect location and $0.02 per GB processed.
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