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What are the ways to connect an on-prem data center to the cloud, and how do you choose?

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Three families: an IPsec site-to-site VPN over the internet, a private circuit (AWS Direct Connect, Azure ExpressRoute, Google Cloud Interconnect), or an SD-WAN overlay that extends into the cloud. VPN is quick and cheap but limited in bandwidth and rides the internet. A private circuit gives steady latency, higher bandwidth and cheaper egress but takes weeks to order. Most enterprises run a circuit as primary and a VPN as backup.

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Site-to-site VPNPrivate circuitSD-WAN into cloud
Lead timeMinutesWeeks (cross-connect, provider)Days
BandwidthAround 1.25 Gbps per AWS tunnel, scale with ECMP50 Mbps to 100 Gbps and upDepends on appliances
PathPublic internet, encryptedPrivate, not encrypted by defaultOverlay over any transport
LatencyVaries with the internetPredictableVaries
CostHourly per connectionPort hours plus lower egress ratesLicenses plus cloud instances

How I choose

  • Proof of concept or small office: VPN.
  • Production data center with steady traffic or latency-sensitive apps: two circuits in two locations, with a VPN as a cheap extra backup.
  • Many branches already on SD-WAN: extend the fabric with virtual appliances in a transit VPC or VNet, or the provider's native SD-WAN integration (AWS Transit Gateway Connect, Azure Virtual WAN).
  • Compliance requires encryption on the circuit: MACsec where supported, or IPsec over the circuit.

BGP is the routing protocol on every one of these options; static routing exists for VPNs but loses automatic failover.

Traps

  • Saying a private circuit is encrypted because it is private.
  • Proposing a single circuit as "redundant" because the provider has two routers.
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