Case Study: How AWS Direct Connect and VPC-to-VPC Routing Work: Timelines, Costs, and Challenges Explained

· 12 min read
Case Study: How AWS Direct Connect and VPC-to-VPC Routing Work: Timelines, Costs, and Challenges Explained

Connecting an on-premises data center to AWS services is a critical step for many businesses embracing hybrid cloud. AWS Direct Connect offers a dedicated, private connection that ensures consistent, high-speed access to AWS, bypassing the public internet. Paired with VPC-to-VPC routing, you can build a robust infrastructure for seamless data flow between environments.

But how long does it really take to set up this connection, and what are the cost implications? In this post, we’ll break down the process, from provisioning a direct line to integrating multiple VPCs, and discuss the financial and technical aspects to help you plan effectively. Whether you're optimizing network performance or reducing latency, understanding these details can save time and unexpected expenses.

Understanding AWS Direct Connect

AWS Direct Connect is a service that bridges your on-premises data centers with the AWS ecosystem. It ensures consistent, high-speed connectivity while sidestepping the unpredictability of public internet connections. For enterprises seeking secure, low-latency connections with high throughput, this solution offers an unparalleled method to streamline and optimize their hybrid cloud infrastructure.

Key Features and Benefits

When it comes to connectivity and reliability, the key features of AWS Direct Connect stand out. Here's how they make a difference:

  • Private Virtual Interfaces (VIFs): Separate your network traffic with dedicated VIFs. These interfaces allow you to securely connect to AWS services, public endpoints, or even private workloads. By isolating traffic, you can ensure better performance and maintain a secure architecture.
    Read more on Virtual Interfaces.
  • Encryption with MACsec: For those needing an additional layer of security, AWS Direct Connect supports Media Access Control Security (MACsec). This feature keeps sensitive data protected by encrypting data transmitted over the connection. It gives enterprises peace of mind knowing their information is safe from prying eyes.
  • SiteLink: Connect multiple on-premises locations or VPCs on a global scale. SiteLink eliminates the need for backhauling traffic through intermediary devices, providing a direct path between locations. This reduces latency and ensures a smoother connection experience.
    Discover more about SiteLink.
  • Consistent Network Performance: Direct Connect offers bandwidth configurations up to 400 Gbps, ensuring your applications run smoothly without lag. Consistent throughput ensures minimal disruptions, making it essential for businesses relying on real-time data processing.

With these features, AWS Direct Connect transforms how enterprises access and use AWS services, making it a cornerstone for hybrid IT environments.

Use Cases for AWS Direct Connect

AWS Direct Connect powers various scenarios, and its utility spans industries and workloads. Let’s explore the most common use cases:

  • Hybrid Cloud Architectures: Many businesses operate in a hybrid environment. AWS Direct Connect makes it easier to seamlessly connect on-premises workloads to AWS. By ensuring predictable throughput and low latency, businesses can extend their data centers into AWS without compromising performance.
    Learn more about hybrid cloud with AWS Direct Connect.
  • Disaster Recovery: In crisis situations, businesses require a reliable way to retrieve data swiftly. Direct Connect ensures immediate access to backups stored in AWS regions, effectively supporting disaster recovery plans with minimal downtime.
  • High-Speed Data Transfers: Transferring large datasets across public internet connections can take hours—or even days. AWS Direct Connect's high-bandwidth options drastically reduce transfer times for huge workloads. This is ideal for media companies transferring large video files or enterprises syncing vast datasets.
  • Global Connections Without the Distance Penalties: With solutions like SiteLink, enterprises can connect multiple global sites without routing traffic through intermediate points. This optimizes collaboration and allows for distributed teams to work on centralized resources in real-time.

These use cases demonstrate how AWS Direct Connect isn’t just about connecting to AWS—it’s about doing so in a way that adds value to business operations. From hybrid cloud optimization to immediate disaster recovery, its flexibility and capabilities make it an essential tool for modern enterprises.

Establishing VPC-to-VPC Routing with Direct Connect

AWS Direct Connect enables organizations to build efficient, reliable connections between on-premises data centers and AWS. But when multiple VPCs are involved, routing becomes more complex and requires additional services like the Direct Connect Gateway and Transit Gateway. This section unpacks how these components work together to enable seamless VPC-to-VPC communication while maintaining high redundancy and availability.

Role of Direct Connect Gateway and Transit Gateway

When you're connecting multiple VPCs through Direct Connect, the Direct Connect Gateway acts as the bridge. This service allows you to connect a Direct Connect private or transit virtual interface with up to 10 Virtual Private Gateways (VGWs) or Transit Gateways across AWS regions. Essentially, it enables cross-region VPC-to-VPC communication without requiring separate physical connections for each region. This minimizes costs and simplifies management.

To support interconnectivity, the Transit Gateway steps in as a centralized hub that manages traffic between your VPCs, on-premises networks, and Direct Connect interfaces. Unlike routing traffic individually between VPCs, Transit Gateway consolidates and streamlines the architecture. This reduces complexities in routing configurations and ensures optimal data flow across your entire network.

However, there are some limitations to be aware of. One such challenge is supernet advertising, which can lead to complications in routes advertising between VPCs and on-prem networks. Understanding these nuances is vital for successful implementation. For more details, refer to AWS Direct Connect Gateway and Transit Gateway documentation.

Redundancy and High Availability

When it comes to network reliability, AWS emphasizes the importance of redundancy with Direct Connect. A single Direct Connect connection introduces a risk of downtime if an outage occurs. To mitigate this, AWS recommends setting up at least two connections in a high-availability configuration. Ideally, these connections should be in different locations or even on physically separate circuits to reduce the risk of a single point of failure.

This setup often follows designs like Active/Active or Active/Passive, helping ensure uninterrupted service even during planned maintenance or unexpected events. AWS also provides a resiliency toolkit to help organizations configure their network for maximum reliability. Learn how to set this up with the AWS Direct Connect Resiliency Toolkit.

The goal is simple: to maintain consistent, low-latency connectivity across your hybrid cloud. In addition to redundancy, AWS regions are linked by low-latency, high-throughput, redundant fiber networks to further bolster resilience. Configuring redundancy is as vital to your network as planning for routine maintenance.

By thoughtfully leveraging these gateways and configuring redundancy, you can cut through the complexity of VPC-to-VPC routing and ensure your architecture is robust enough to handle even the biggest challenges.

Setup Timeline: From Request to Activation

Setting up AWS Direct Connect is an integral step in bridging your on-premises data center to the AWS cloud. From the initial request to the final activation, this process involves several moving parts that can vary in duration. On average, it could take anywhere from a few days to several weeks, depending on a variety of factors. Let's explore the key timeline influencers and how you can streamline the process to minimize delays.

Factors Influencing the Timeline

Several factors determine the time it takes to establish an AWS Direct Connect connection. Here's what you need to consider:

  1. Datacenter Readiness: Before even initiating the AWS Direct Connect setup, ensure your on-premises data center is prepared. This includes having the necessary networking equipment, such as routers and switches, configured and ready to connect with AWS. If your data center isn't prepped, delays in hardware procurement, installation, or configuration can prolong the timeline. Having a clear checklist for readiness can save precious time.
  2. AWS Approval Process: Once you submit your connection request, AWS evaluates it based on feasibility and compliance. Factors like proximity to a Direct Connect location and the type of connection (dedicated vs. hosted) play a role in this approval. AWS typically provides guidelines and estimated timelines, but this step can take longer if additional clarification or documentation is required. Refer to the AWS Direct Connect FAQ for more on the approval process.
  3. Involvement of Third-Party Contractors: Establishing physical connections often involves third-party providers for cabling, network integration, or fiber optic link installations. These contractors play a critical role in ensuring the physical infrastructure between your data center and the AWS landing zone is in place. However, their schedules, project backlogs, or logistical challenges can add weeks to the process. Proactive coordination with these providers is essential to avoid miscommunications and delays.
  4. Testing and Validation: Once the infrastructure is technically established, you’ll need to conduct extensive testing to validate the connection’s speed, reliability, and security. This phase includes cross-verifying configurations, performing data throughput tests, and ensuring compliance with your organization’s standards. Depending on the complexity, this can add extra days or weeks.

Streamlining the Process

If your goals include minimizing lead time and avoiding unnecessary obstacles, there are strategic steps you can take to accelerate the Direct Connect setup process:

  1. Start with a Dedicated AWS Network Services Account: Using a dedicated account specifically for network services gives you a focused environment to isolate network configurations, reducing the risk of errors from shared resource management. This best practice can simplify the setup and help streamline coordination with AWS support teams.
  2. Leverage the AWS Direct Connect Resiliency Toolkit: AWS offers a Direct Connect Resiliency Toolkit to guide you through designing and configuring redundant connections efficiently. This toolkit helps to preconfigure your resiliency model, which can significantly cut downtime during the planning and execution stages.
  3. Prepare Documentation Ahead of Time: Gather all necessary credentials, authorizations, and technical details upfront for both AWS and third-party collaborators. Missing documents can lead to delays, as you might need to repeat approvals or testing phases.
  4. Coordinate Early with Third-Party Contractors: Establish clear communication lines with all third-party providers involved in the physical installation. This includes confirming deadlines, hardware availability, and on-site visits well in advance. Proactively providing them with AWS guidelines and connection requirements can also accelerate their timelines.
  5. Utilize Pre-Tested Configurations: AWS recommends several pre-approved configurations for Direct Connect. These configurations streamline the process because they bypass extensive manual setup and testing. For more detailed steps, refer to the AWS Direct Connect User Guide.

By understanding the variables at play and implementing these strategies, you can reduce the time it takes to deploy AWS Direct Connect—and avoid unnecessary interruptions to your operations.

Cost Implications of AWS Direct Connect

AWS Direct Connect provides businesses with the ability to establish private, dedicated connections to AWS services, enabling predictable performance and reducing public internet dependency. However, understanding its cost structure is crucial to avoid unnecessary financial surprises. Below, we'll dive into the key pricing components and share strategies to mitigate potential cost overruns.

Understanding Pricing Components

When evaluating AWS Direct Connect, several interconnected pricing factors come into play. Knowing their impact on your overall expenditure helps in crafting an efficient budget.

  1. Data Transfer Rates:
    One of the most significant costs tied to AWS Direct Connect is data transfer. While inbound data transfer to AWS is typically free, outbound data transfer is charged regionally. Rates vary depending on the AWS region and the amount of data processed. For those handling substantial amounts of data across multiple regions, these fees can quickly add up. For an overview, you can visit AWS Direct Connect Pricing.
  2. Port Hourly Rates:
    AWS charges an hourly fee based on the speed of your connection. Speeds range from 50 Mbps to 100 Gbps, with higher speeds coming at premium rates. Businesses opting for faster connections need to calculate whether the performance benefits justify the added expense.
  3. Transit Gateway Setup Costs:
    If you’re using Transit Gateway to manage multiple VPCs, you'll face additional costs. Transit Gateway pricing includes hourly fees for its use and for each VPC attachment. These charges may appear marginal but can grow when scaling across numerous VPCs. Explore more details on AWS Transit Gateway Pricing.
  4. Dedicated vs. Hosted Connections:
    AWS offers dedicated connections managed by customers and hosted connections provided through third parties. While dedicated connections give full control, hosted connections are more cost-friendly for businesses without in-house network teams. Weighing these options against your specific needs can make a significant financial difference.
  5. Additional Costs for Redundancy:
    AWS emphasizes network resilience by suggesting multiple Direct Connect connections to avoid downtime. However, redundancy inevitably introduces additional costs. Businesses must balance the expense of setting up backup connections against the value of uninterrupted service. Learn more from AWS Redundancy Guidance.

Being aware of these components can help you plan and align your cloud networking budget with your business goals.

Mitigating Cost Overruns

To avoid unexpected expenses and better manage AWS Direct Connect costs, targeted optimization strategies are essential. Here are several actionable tactics:

  1. Monitor Usage with AWS Cost Explorer:
    AWS Cost Explorer equips you with the visibility to identify cost patterns, analyze spending anomalies, and make informed adjustments. For instance, using advanced filters, you can track data transfer costs by region or service to ensure your architecture matches your budget. AWS also provides rightsizing recommendations to optimize usage. Explore these tools further here: AWS Cost Explorer.
  2. Avoid Overprovisioning Resources:
    A common mistake when setting up AWS services is overestimating bandwidth or port speeds. Start with smaller, scalable configurations and incrementally scale resources as needed. This approach avoids paying for unused capacity while retaining the ability to grow efficiently.
  3. Centralize VPC Connections with Transit Gateway:
    Instead of creating multiple Direct Connect links for each VPC, centralize your architecture by routing traffic through a single Transit Gateway. While Transit Gateway incurs some costs, it significantly reduces the complexities and expenses associated with managing numerous connections.
  4. Implement Reserved Data Transfer Volumes:
    For organizations with predictable data transfer needs, AWS allows you to negotiate committed usage plans for outbound data, typically resulting in reduced per-GB charges. This is an excellent option for enterprises prioritizing cost predictability.
  5. Regularly Audit Configuration:
    Network configurations often grow unnecessarily complex and costly as requirements evolve. Schedule periodic audits of Direct Connect, Transit Gateway, and other networking configurations to eliminate inefficiencies. Using tools like AWS Well-Architected Cost Optimization Pillar can provide further insights.
  6. Leverage Third-Party Cost Optimization Services:
    Consider incorporating services specialized in AWS cost management like CloudZero or Spacelift, which have tools designed explicitly for fine-grained cost control. These platforms can help provide oversight where manual tracking might fall short. Learn more strategies from AWS Cost Optimization Tools.

By taking advantage of these tactics, businesses can strike a balance between performance and affordability, ensuring that AWS Direct Connect remains a viable part of their hybrid cloud strategy.

Use stack8s Instead!

When it comes to connecting workloads across multiple cloud platforms and regions, AWS Direct Connect often falls short due to its complexity, setup time, and steep costs. If you're looking for an alternative that provides scalability, reduced setup timeline, and cost efficiencies, stack8s may be the solution you’ve been searching for. It redefines multi-cloud connectivity by offering faster deployment, seamless operation, and better cost management.

What Makes stack8s Different?

With stack8s, you can create a truly global network using existing low-latency links between major cloud providers and hundreds of data centers worldwide. Its innovative architecture allows you to link your workloads effortlessly, forming a high-performance mesh network controlled through a single interface.

Here’s how stack8s stands out:

  • Unparalleled Connectivity: stack8s links over 15 cloud providers and 700+ data centers, providing coverage across all continents. This eliminates the need to manage multiple platforms or connections separately.
  • Single Control Plane: Forget the hassle of juggling different interfaces. With stack8s, you manage your entire multi-cloud network through a unified dashboard, simplifying operations and saving precious time.
  • Accelerated Setup Time: Traditional AWS Direct Connect setups can take weeks, involving approvals, physical infrastructure, and testing. stack8s drastically reduces this timeline, enabling businesses to have their operations running in days—not weeks.

Time is Money! How stack8s - 'Spine' solves the compute clustering problem

Pre-Existing Data Center Links
stack8s comes with built-in connectivity to 700+ global data centers and 15+ cloud providers. That means you don’t have to establish new circuits or wait on telco lead times—our private links (up to 100 Gbps) are already in place.

Seamless Multi-Cloud
Create a central cluster master in, say, Germany, then add worker nodes from AWS, DigitalOcean, GCP, Scaleway, Vultr, or on-prem GPU bare-metals. Everything runs on a single Kubernetes control plane.

Secure, Low-Latency Routing
All routing is private. Inter-node communication is tightly integrated into our “stack8s Spine,” ensuring low latency and high throughput across providers, regions, and even on-prem gear.

Vanilla Kubernetes
No funky SDKs or custom tooling. Use vanilla Kubernetes labels and annotations, and we’ll handle the rest—network plumbing, resource provisioning, and billing.

stack8s - Spine
Our unique Spine handles infrastructure billing and inter-cloud connectivity behind the scenes, giving you one unified platform to run, scale, and secure your microservices.

Simplified Cost Management and Scalability

Managing costs in multi-cloud environments can be daunting. AWS Direct Connect’s pricing is based on multiple factors like data transfer rates, port hours, and additional services such as Transit Gateway. In comparison, stack8s offers a streamlined and transparent pricing model that scales as your workloads grow.

  • Transparent Pricing: Unlike AWS Direct Connect, where hidden fees often take businesses by surprise, stack8s offers clear and all-inclusive pricing, bringing peace of mind to your IT budget.
  • Dynamic Scaling: stack8s uses Kubernetes as the foundation for its Platform-as-a-Service (PaaS), meaning workloads can scale up or down dynamically according to your needs—no overprovisioning or underutilization to worry about.

If you want to understand how this can directly affect your cloud costs, check out how stack8s reduces Kubernetes-based cloud bills.

Faster Deployment and Enhanced Control

One feature where traditional AWS Direct Connect struggles is deployment speed. Between involving third-party contractors and testing, getting started can take weeks or even longer in certain regions. With stack8s, the process is much faster and streamlined.

  • Plug-and-Play Setup: Instead of waiting for extensive physical connections or approvals, stack8s allows you to set up a plug-and-play system using pre-existing global low-latency networks. This streamlined setup helps businesses avoid delays in go-to-market strategies.
  • Total Control at All Times: stack8s integrates everything into a single Kubernetes-based mesh network, providing a consistent and reliable structure to manage myriad moving parts across regions and providers.

For anyone looking to reduce inefficiencies in their current cloud architecture, learn more about multi-cloud and stack setup enhancements.

Is stack8s Right for Your Business?

If you've been frustrated by the lengthy timelines and costs associated with AWS Direct Connect or are seeking a truly multi-cloud solution, switching to stack8s could be the answer. Its ability to unify cloud connectivity while improving performance and lowering costs makes it a powerful option for businesses prioritizing both speed and scalability.

Think of stack8s as the gold standard in multi-cloud connectivity, giving you enterprise-grade solutions without the usual headaches—so you can focus on innovation, not infrastructure.

Conclusion

AWS Direct Connect and VPC-to-VPC routing offer businesses an effective way to build secure, high-performance hybrid cloud infrastructures. However, the process often involves considerable setup time, third-party coordination, and ongoing costs that require careful planning and management.

Understanding the timelines, from provisioning to activation, and breaking down cost factors helps organizations avoid delays and financial surprises. Implementing best practices—like redundancy planning, using tools such as Transit Gateway or Direct Connect Gateway, and proactive cost optimization—ensures a resilient and cost-effective network architecture.

For businesses looking to scale efficiently and maximize their cloud investments, evaluating the full scope of technical and financial considerations is critical. With a strategic approach, you can streamline your cloud connectivity while maintaining predictable costs and high reliability. Are you ready to optimize your hybrid cloud network and align it with your business goals?