What is Amazon VPC?
Amazon VPC (Virtual Private Cloud) is AWS’s fundamental networking service that provides a logically isolated virtual network area in the AWS Cloud. VPC forms the foundation for practically all AWS workloads: EC2 instances, RDS databases, Lambda functions in VPC, ECS containers, and EKS Kubernetes clusters all run within a VPC. You define your own IP address range, create subnets, configure routing tables, and fully control network gateways.
VPC architecture enables network isolation similar to a traditional data center, combined with the scaling advantages and flexibility of the cloud. You can place resources in public subnets (with internet access) or private subnets (without direct internet connection), build multi-tier architectures with different security zones, and establish hybrid cloud connections to on-premise data centers.
For European enterprises, VPC is available in all EU regions and enables complete control over data residency. Through targeted configuration of subnets, route tables, and VPC Endpoints, you can ensure data never leaves the EU. VPC is free; you only pay for used components like NAT Gateways, VPN Connections, and VPC Endpoints.
Common Use Cases for Amazon VPC
Multi-Tier Web Applications
Classic 3-tier architecture: Public subnets for Application Load Balancer (internet-facing), private subnets for application servers (EC2, ECS, EKS), isolated private subnets for databases (RDS, Aurora). Each tier in at least 2 Availability Zones for high availability. Security Groups isolate traffic: ALB accepts only HTTP/S from internet, app servers only from ALB, database only from app servers.
Hybrid Cloud Connections
Connect AWS VPC with on-premise data centers via Site-to-Site VPN (encrypted over internet, up to 1.25 Gbps per tunnel) or AWS Direct Connect (dedicated network connection, up to 100 Gbps). Transit Gateway as central hub for multiple VPCs and VPN connections. AWS Client VPN for remote user access to VPC resources.
Secure Isolation of Environments
Separate development, staging, and production into separate VPCs with different AWS accounts (AWS Organizations). VPC Peering for controlled communication between environments. Shared Services VPC for central services (DNS, monitoring, logging), connected via Transit Gateway.
Microservices Architectures
EKS or ECS Fargate in private subnets, Application Load Balancer or API Gateway in public subnets. Service-to-service communication via PrivateLink or directly via security groups. VPC Endpoints for AWS services (S3, DynamoDB, Secrets Manager, ECR) reduce NAT Gateway traffic and costs.
Best Practices for Amazon VPC
1. Plan IP Address Range Carefully
Choose sufficiently large CIDR blocks (e.g., /16 per VPC) for future growth. Avoid overlaps with on-premise networks or other VPCs. Use RFC 1918 private IP ranges. VPC supports secondary CIDR blocks for expansion.
2. Multi-AZ Design for High Availability
Distribute subnets across at least 2 Availability Zones. One public and one private subnet per AZ. NAT Gateway per AZ for AZ independence. Load balancers automatically distributed across AZs.
3. Private Subnets as Default
Place all resources in private subnets by default. Only internet-facing load balancers and NAT Gateways in public subnets. Significantly reduces attack surface.
4. Enable VPC Flow Logs
Enable Flow Logs at VPC level for visibility. Store in S3 or CloudWatch Logs. Use Athena for analysis. GuardDuty automatically analyzes Flow Logs for threat detection.
5. Use VPC Endpoints
Use Gateway Endpoints (free) for S3 and DynamoDB. Interface Endpoints for frequently used services reduce NAT Gateway costs and improve security.
Amazon VPC vs. Alternatives
When comparing Amazon VPC with network solutions from other cloud providers, different strengths emerge:
Amazon VPC vs. Google Cloud VPC: Google Cloud uses a global VPC model (one VPC can span multiple regions), AWS VPC is regional. AWS has more regions worldwide and more sophisticated hybrid cloud options.
Amazon VPC vs. Azure Virtual Network: Azure is stronger in hybrid cloud integration. AWS convinces through more service integrations (100+ services with VPC Endpoints) and Transit Gateway for complex topologies.
As multi-cloud experts, we provide vendor-neutral advice for the optimal network architecture for your requirements.
Amazon VPC Integration with innFactory
As an AWS Partner, innFactory supports you with:
Network Architecture Design: We design scalable, secure VPC architectures: multi-tier designs, hybrid cloud connections, multi-account strategies, disaster recovery architectures.
Migration and Hybrid Cloud: Transfer of existing on-premise workloads: network assessment, Direct Connect setup, Site-to-Site VPN, DNS integration.
Security Hardening: Defense-in-depth strategies: security group and NACL design, VPC Flow Logs with GuardDuty, AWS Network Firewall, PrivateLink integration.
Cost Optimization: NAT Gateway consolidation, Gateway Endpoints for S3/DynamoDB, VPC Endpoints for frequently used services, data transfer optimization.
Monitoring and Troubleshooting: VPC Flow Logs to S3 with Athena, CloudWatch dashboards, Network Manager, Reachability Analyzer, automatic alarms.
Contact us for a non-binding consultation on Amazon VPC and AWS Networking.
Available Tiers & Options
Default VPC
- Pre-configured
- Internet connectivity included
- Quick start
- Less security control
- Public subnets by default
Custom VPC
- Full network control
- Custom IP ranges
- Security group customization
- Manual configuration required
Typical Use Cases
Technical Specifications
Frequently Asked Questions
What is Amazon VPC?
Amazon VPC (Virtual Private Cloud) is a logically isolated network area in the AWS Cloud where you can launch AWS resources in a virtual network you define. You have complete control over IP address ranges, subnets, routing tables, and network gateways. VPC forms the foundation for nearly all AWS workloads and enables secure network isolation similar to a traditional data center, combined with the scaling benefits of the cloud.
When should I use Custom VPC instead of Default VPC?
Use Custom VPC for production workloads with specific security requirements. Custom VPC offers full control over IP ranges (CIDR blocks), subnet design (public/private), security groups, network ACLs, and routing. Default VPC is suitable for quick tests but has security limitations: all subnets are public by default, fewer isolation options. For compliance, multi-tier architectures, or hybrid cloud, Custom VPC is mandatory.
What is the difference between Security Groups and Network ACLs?
Security Groups are stateful firewalls at the instance level: return traffic is automatically allowed, only allow rules possible, evaluates all rules. Network ACLs are stateless firewalls at the subnet level: return traffic must be explicitly allowed, allow and deny rules possible, evaluates rules in order. Best practice: Security Groups for granular control per resource, NACLs as additional subnet-level protection layer.
How does VPC Peering work?
VPC Peering connects two VPCs over private AWS network so resources can communicate via private IPs. Works within a region, cross-region, and cross-account. No transitive routing: VPC A peered with B, B peered with C → A cannot communicate with C. For hub-and-spoke topologies, use Transit Gateway. VPC Peering is free within an AZ, data transfer is charged.
What does Amazon VPC cost?
The VPC itself is free. You pay for used components: NAT Gateway ($0.045/hour + $0.045/GB processed data), VPN Connection ($0.05/hour), Transit Gateway ($0.05/hour + $0.02/GB), VPC Endpoints ($0.01/hour + $0.01/GB for Interface Endpoints, Gateway Endpoints are free), PrivateLink, and data transfer between AZs ($0.01/GB). IP Address Manager (IPAM) costs $0.00027/IP/month.
Is Amazon VPC GDPR-compliant?
Yes, VPC is available in all EU regions (Frankfurt, Ireland, Paris, Stockholm, Milan). VPC configuration affects data residency: Private subnets without NAT Gateway or Internet Gateway prevent internet access completely. VPC Endpoints enable access to AWS services without internet. Flow Logs can be stored in CloudWatch or S3 in EU regions. Combine with AWS Organizations SCP for enforced data residency.
What are VPC Endpoints and when should I use them?
VPC Endpoints enable private access to AWS services without Internet Gateway, NAT, or VPN. Two types: Gateway Endpoints (free, for S3 and DynamoDB) and Interface Endpoints (powered by PrivateLink, for 100+ services, charged). Use endpoints for: better security (traffic stays in AWS network), compliance (no internet transit), performance (lower latency), cost savings (no NAT Gateway for S3/DynamoDB traffic).
How do I configure a multi-tier architecture with VPC?
Classic 3-tier design: Public subnets for load balancers (internet-facing), private subnets for application layer (EC2, ECS), isolated private subnets for databases (RDS, ElastiCache) without route to NAT Gateway. Each tier in at least 2 AZs for high availability. Security Groups: ALB allows HTTP/S from 0.0.0.0/0, app layer allows only from ALB security group, DB layer allows only from app security group. Network ACLs as additional subnet-level protection.
What is AWS Transit Gateway and when do I need it?
Transit Gateway is a central hub for network connectivity between VPCs, on-premise networks (via VPN/Direct Connect), and remote networks. Replaces complex VPC peering mesh topologies with hub-and-spoke model. Use Transit Gateway when: more than 3-5 VPCs need connection, central routing policies required, hybrid cloud with multiple VPN connections, multi-region peering. Costs: $0.05/hour + $0.02/GB.
How do I optimally secure a VPC?
Best practices: Least-privilege security groups (only needed ports/protocols), network ACLs as defense-in-depth, private subnets for all non-internet-facing resources, enable VPC Flow Logs for traffic analysis, AWS Network Firewall for IDS/IPS, GuardDuty VPC Flow Logs integration for threat detection, don't use default security group, Session Manager instead of SSH bastion hosts, PrivateLink for AWS service access, regular security group audits with AWS Config.