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What is Cloud Interconnect?

Cloud Interconnect is a private network connection directly between your on-site network and your cloud provider's infrastructure. You can choose from a dedicated interconnect, with dedicated network lines, where all the traffic on a connection is your organization's. A partner interconnect is where several customers share traffic on a private third-party network line, each with its own dedicated bandwidth. Cloud interconnect can offer predictable network performance, higher security, and better performance in hybrid environments.

What are the types of Cloud Interconnect?

Multi-Cloud Interconnect with AWS Direct Connect

You can connect on-premises data networks to public cloud infrastructure in several ways.

Dedicated interconnect

Dedicated Interconnect provides a physical network connection between on-premises servers and the cloud environment. An organization’s on-premises infrastructure connects to a cloud provider’s network. This occurs either through cable to the premises from the cloud data center, or between the customer and the cloud provider in a data center. This type of Cloud Interconnect provides low latency, high bandwidth, and dedicated connectivity for accessing cloud resources. Moreover, it provides enhanced isolation and consistent performance because the network infrastructure is not shared with other tenants.

Partner interconnect

Partner interconnect uses a third-party, such as a telco, to establish an on-premises to cloud connection. A partner interconnect is often more cost-effective because you will typically share the network infrastructure with other customers, where you have dedicated bandwidth. You pay for the hosted networking services based on the bandwidth, location, and other criteria.

Multi-Cloud Interconnect

Multi-Cloud Interconnect is the physical networking infrastructure that connects different cloud platforms and can be used in combination with either dedicated interconnect or partner interconnect. Organizations use multi-Cloud Interconnect to support workloads that require specific cloud-native capabilities offered by multiple cloud service providers. When implemented, they can move data quickly between multi-cloud environments without passing through the internet.

How does Cloud Interconnect work?

Cloud interconnect for local to public network

Cloud interconnect provides a direct connection between local and cloud infrastructure. It allows organizations to bypass the internet when exchanging data between local servers or a virtual private cloud and the public cloud. You can think of Cloud Interconnect as a superhighway that directly connects one city to another, bypassing smaller towns. It requires provisioning dedicated networking hardware, routing traffic, and ensuring data in transit is secure. Here are some key processes involved in implementing Cloud Interconnect.

Physical connection establishment

Setting up Cloud Interconnect involves establishing direct connections between local and cloud platforms. Organizations either use existing infrastructure or engage cloud providers or third parties to set up the link. This task might involve setting up physical networking infrastructure, including laying cabling.

Network routing configuration

Network routing is crucial to ensuring a reliable, high-performing data pathway between the local and public clouds. Based on the organization's requirements, network engineers configure routing policies, IP addressing, bandwidth allocation, workload priority, and other networking parameters. This ensures high data transfer speed for the exclusive network connection.

Traffic isolation

Using Cloud Interconnect isolates data in transit from the internet to strengthen data security. By keeping data packets from traversing through the internet, it reduces the risks of data breaches and helps organizations comply with data privacy laws. Organizations must encrypt data in transit over the link to further strengthen security when encryption is required.

What are the benefits of Cloud Interconnect?

Generally, Cloud Interconnect helps overcome performance bottlenecks, improve network resilience, and reduce long-term cloud spend. Explore some of the benefits of Cloud Interconnect.

Predictable network performance

Cloud interconnect solutions offer a dedicated low-latency connection that is free of network fluctuations caused by bandwidth sharing and external factors. Therefore, network throughput, latency, and bandwidth availability are more predictable and consistent for connected workloads. Applications like video conferencing, gaming, and high-volume financial operations can use Cloud Interconnect to provide a disruption-free experience.

Enhanced security and compliance

Organizations benefit from Cloud Interconnect's exclusivity and data security measures. As data passes through a physical direct link or a private software-defined network, the risk of unauthorized interception is significantly reduced. This way, you can access services hosted on the cloud with a private connection. Moreover, Cloud Interconnect provides greater observability in data movement and storage, which allows organizations to meet strict compliance guidelines. These benefits make Cloud Interconnect ideal for highly-regulated industries, such as finance and healthcare.

Cost optimization

Implementing Cloud Interconnect might require an initial investment, particularly for a dedicated connection. However, the cost of resource utilization, data egress, and risk management decreases over time.

Reduced latency

Cloud interconnect provides the shortest path between on-premises and public cloud networks. Instead of passing through multiple third-party switches and servers, computers send data directly to the destination. The time saved can prove significant for high-performing applications such as those that expect real-time or near-real-time responses.

What are Cloud Interconnect use cases?

Over the years, organizations have leveraged Cloud Interconnect services as part of their cloud strategy. We share some examples below.

Hybrid cloud deployments

Organizations use Cloud Interconnect to extend their local infrastructure into the cloud environment. This architecture allows organizations to store sensitive data locally to meet data residency laws, while enjoying the cost benefits of public cloud platforms. Additionally, Cloud Interconnects provide a centralized approach to managing geographically dispersed data center locations, which improves operational efficiency. For example, Kambi used AWS Direct Connect to build a hybrid infrastructure comprising several data centers and Amazon Virtual Private Cloud (VPC). This allows the company to improve operational efficiency by 50%.

Database replication and backup

Organizations use a low-latency and secure network to replicate and back up information to mitigate data risks and ensure business continuity. This is helpful for data migration that involves massive workloads across local data centers to public cloud environments. For example, Siemens established reliable, high-throughput connections for data replication during its migration of SAP HANA to the AWS cloud.

Enterprise applications migration

Some enterprise applications run on legacy off-premise infrastructure, which accumulates technical debt over time. With Cloud Interconnect, IT teams can simplify application modernization by migrating enterprise applications, along with their dependencies such as databases, over a high-throughput network connection. For example, Fortive uses AWS Direct Connect to migrate its data centres to the AWS cloud, thereby reducing network service delivery costs by 70%.

High-performance computing workloads

High-performance computing workloads, such as artificial intelligence and machine learning (AI/ML), big data processing, and animation rendering, can use Cloud Interconnect to ensure predictable response time. Unlike the internet, IT teams can use this scaled bandwidth to accommodate ongoing demand for higher data transfer rates. For example, CoMix Wave Films, a production studio, bridges its unified cloud render tool to local servers with dedicated high-throughput network connections.

What is the difference between Cloud Interconnect and VPN?

A virtual private network (VPN) is a networking technology that creates an encrypted connection over the internet with VPN servers. A computer connects to a VPN server to protect its data from public scrutiny.

Meanwhile, Cloud Interconnect refers to a direct network connection that bypasses the internet while allowing isolated data transfer. When sending data with a VPN, performance is not guaranteed, as other users compete for allocated networking resources. On the other hand, Cloud Interconnect allocates dedicated resources that ensure consistent and predictable network performance. Typically, a VPN is more affordable to set up, while a Cloud Interconnect requires a larger initial investment. A VPN can also be provisioned over Cloud Interconnect.

How can AWS support your Cloud Interconnect requirements?

AWS offers a range of services that help support your cloud and on-premise network connections and requirements.

  • AWS Direct Connect creates a dedicated network connection between your on-premise networks and AWS.

  • AWS Transit Gateway helps you connect Amazon Virtual Private Clouds, AWS accounts, and on-premises networks to a single gateway.

  • Amazon Virtual Private Cloud allows you to define and launch AWS resources in a logically isolated virtual network.

  • Elastic Load Balancing allows you to distribute network traffic to improve application scalability.

Get started with Cloud Interconnect on AWS by creating a free account today.

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