Cloud Architecture
Cloud Networking Costs: VPC, Load Balancers, VPN, Direct Connect Pricing Explained
Networking: The Invisible Cloud Cost Driver
Networking costs can represent 15-30% of total cloud spend, yet they're often underestimated or excluded from initial estimates. Understanding each component is essential for accurate budgeting.
Load Balancer Costs
| Service | Base Monthly | Per LCU/Hour | Annual (2 LBs) |
|---|---|---|---|
| AWS ALB | $16.43/LB | $0.008/LCU | ~$394 |
| AWS NLB | $16.43/LB | $0.006/NLCU | ~$394 |
| Azure Standard LB | $18.25/LB | $0.005/rule/hr | ~$438 |
| GCP HTTP(S) LB | $18.00/LB | $0.008/rule/hr | ~$432 |
| OCI LB (100Mbps) | $7.30/LB | Based on bandwidth | ~$175 |
VPN Gateway Costs
| Service | Monthly | Per Tunnel |
|---|---|---|
| AWS Site-to-Site VPN | $36 (connection) | $0.05/hour |
| Azure VPN Gateway (Basic) | $27/gateway | $10/connection |
| Azure VPN Gateway (VpnGw1) | $139/gateway | $10/connection |
| GCP Cloud VPN | — | $36/tunnel/month |
| OCI VPN Connect | FREE | $0 |
Dedicated Connectivity
| Service | 1Gbps/Month | 10Gbps/Month |
|---|---|---|
| AWS Direct Connect | $220-440 | $1,650-2,200 |
| Azure ExpressRoute | $55 (metered) | $220 (metered) |
| GCP Dedicated Interconnect | $700 | $1,700 |
| OCI FastConnect | $0 + port charge | $0 + port charge |
Azure ExpressRoute "metered" pricing adds egress charges per GB at $0.025-0.07. The "unlimited" tier is $1,500-5,000/month but includes all egress.
NAT Gateway — Often Overlooked
NAT Gateways for private subnet internet access are a common hidden cost:
| Provider | Hourly | Per GB Processed | Monthly (10TB) |
|---|---|---|---|
| AWS NAT Gateway | $0.045 | $0.045/GB | ~$483 |
| Azure NAT Gateway | $0.045 | $0.045/GB | ~$483 |
| GCP Cloud NAT | $0.031/NAT-hour | $0.045/GB | ~$472 |
Inter-Region Traffic Costs
Data transfer between regions is charged by the sender. AWS inter-region: $0.02/GB (e.g., us-east-1 ↔ ap-southeast-1). For applications with significant cross-region traffic, this adds up fast: 10TB cross-region monthly = $200.
Networking Cost Reduction Strategies
- Use VPC endpoints for AWS services (S3, DynamoDB) — avoids NAT Gateway and internet costs
- Place application and database in same availability zone — avoids AZ transfer fees
- Compress data before cross-region transfer
- Use Global Accelerator or Azure Front Door instead of multiple regional load balancers
- OCI's VPN and NAT are free — significant advantage for hybrid connectivity
Always model the full networking cost including egress, load balancers, and VPN — not just compute. For hybrid environments with significant VPN or dedicated connectivity needs, OCI's free networking services provide meaningful savings.
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