Cloud interconnect

Also known as: Dedicated Interconnect · AWS Direct Connect · Azure ExpressRoute

On this page 7

A cloud interconnect is a dedicated private network connection between a customer network, such as a data center or office, and a cloud provider’s backbone that bypasses the public internet. In cloud networking, it is the high-capacity, predictable alternative to an internet-based VPN gateway for hybrid architectures.

Each major provider sells its own version: Dedicated Interconnect at Google Cloud, AWS Direct Connect at Amazon Web Services and Azure ExpressRoute at Microsoft. The names differ, but all three deliver the same idea: a physical or partner-provided circuit at a colocation facility, with BGP routing carrying private traffic into virtual networks such as a VPC.

How a cloud interconnect is built

A cloud interconnect starts with a physical cross-connect in a colocation facility where the provider has an edge router. The customer either places its own router in that facility or buys a circuit from a carrier that extends the connection to its data center. The cross-connect is a fiber cable between the customer port and the provider port, typically using single-mode optics at 10 Gbps or 100 Gbps.

On top of the physical link, the customer creates one or more logical attachments, which are 802.1Q VLANs that each carry a separate BGP session. AWS calls these virtual interfaces, Google Cloud calls them VLAN attachments, and Azure uses private and Microsoft peering on an ExpressRoute circuit. Through BGP, the customer advertises on-premises prefixes to the cloud and learns the cloud network prefixes in return.

LayerComponentWhat it does
PhysicalFiber cross-connect and opticsCarries bits between customer and provider routers
Data link802.1Q VLAN taggingSeparates logical attachments on one port
RoutingeBGP session per attachmentExchanges prefixes and controls path preference
Cloud attachmentVirtual gateway or cloud routerConnects the circuit to one or more VPCs
Optional encryptionMACsec or IPsec over the linkAdds confidentiality on the private path
Layers of a cloud interconnect

Dedicated and partner connection models

Providers offer two connection models. A dedicated connection gives the customer an entire physical port, while a partner or hosted connection is provisioned through a service provider that already has capacity into the cloud and sells a slice of it. The choice depends mostly on required bandwidth and whether the customer has equipment in a supported facility.

PropertyDedicated connectionPartner or hosted connection
CapacityFull ports, commonly 10 or 100 GbpsSub-rate options, often 50 Mbps to 10 Gbps
Location requirementRouter in a provider colocation facilityAny site the partner can reach
Provisioning timeWeeks, including cross-connect orderingDays to weeks, depending on the partner
Operational controlCustomer manages router and opticsPartner manages part of the path
Typical userLarge enterprises and heavy data moversMid-sized organizations and branch sites
Comparing the two connection models

Some offerings add features such as link aggregation to bundle several ports, MACsec encryption at layer 2 on supported ports, and global routing options that let one circuit reach cloud regions in other geographies. These features vary by provider and port speed, so they must be checked for each design.

Cloud interconnect compared with other connectivity options

A cloud interconnect is one of several ways to reach cloud resources, and it is often combined with them. The key differences lie in the path, the performance consistency and the data transfer pricing.

OptionPathPerformanceTypical use
Cloud interconnectPrivate circuit to provider edgeConsistent latency, up to 100 Gbps per portProduction hybrid workloads
Site-to-site VPNIPsec tunnels over the internetVariable, about 1 to 3 Gbps per tunnelBackup path or small sites
VPC peeringInside the provider networkProvider backbone speedConnecting two cloud networks
Transit gatewayHub inside the provider networkProvider backbone speedRouting among many VPCs and circuits
Private endpointPrivate IP for a managed serviceProvider backbone speedReaching one service without public exposure
Hybrid and cloud connectivity options

In practice, a circuit terminates on a transit gateway or cloud router so that one connection can serve many VPCs, and a VPN over the internet is kept as a cheaper backup path. Outbound data over an interconnect is usually billed at a lower per-gigabyte rate than internet egress, which is a significant factor for organizations that move large datasets.

Designing for resilience and performance

A single cloud interconnect is a single point of failure: one fiber cut, router failure or facility maintenance window can isolate the cloud environment. Providers therefore publish resiliency models and tie their availability commitments to them.

TopologyDesignTolerates
Single connectionOne port in one facilityNothing beyond the provider side
Dual connection, one facilityTwo ports on separate devicesDevice or port failure
Dual facilityConnections in two colocation sitesLoss of an entire facility
Maximum resilienceTwo ports in each of two facilitiesFacility loss plus a device failure
Interconnect plus VPNCircuit primary, IPsec tunnel as backupTotal circuit loss at reduced capacity
Common resilience topologies

Routing policy controls how the redundant paths are used. Engineers tune BGP attributes such as local preference, AS path prepending and MED to choose active-active or active-passive behavior, and enable Bidirectional Forwarding Detection so failover takes seconds instead of the default BGP hold time of around 90 seconds. Jumbo frames, commonly up to about 8,500 to 9,000 bytes of MTU depending on provider, can improve throughput for bulk transfers, but only if every hop supports them.

Limitations and common mistakes

  • Assuming the link is encrypted: private does not mean encrypted, so sensitive traffic needs MACsec, IPsec or TLS on top.
  • Overlapping IP ranges between on-premises and cloud networks block routing and force painful renumbering.
  • Exceeding route limits: providers cap the number of prefixes per BGP session, and exceeding the cap can drop the session.
  • Ignoring lead time: cross-connect orders and carrier circuits can take several weeks, which delays migration plans.
  • Asymmetric routing when on-premises and cloud prefer different paths, which breaks stateful firewalls.

Cost is another limitation: port fees are charged hourly whether the link is used or not, and colocation space, cross-connects and carrier circuits add recurring charges. For small or intermittent workloads, a well-designed VPN is often the more economical choice.

Understanding it simply

Reaching the cloud over the internet is like driving on public roads. It usually works, but traffic jams happen. A cloud interconnect is like a private road built straight to the cloud provider’s door.

Only the company’s traffic uses that road. Travel time stays steady and predictable, and large loads move quickly. Each load also costs less. The trade-off is a monthly bill for the road itself. A careful company builds two roads in case one is closed.

Applied in practice

A hospital group runs its electronic health records system in its own data center but moves imaging analytics and backups to a public cloud. Each night it transfers about 15 TB of medical images, which over a VPN often took longer than the overnight window and suffered from unpredictable latency.

The network team orders two 10 Gbps dedicated connections in two different colocation facilities, attaches them to a transit gateway that serves six VPCs and keeps an IPsec VPN as a last-resort backup. BGP local preference makes one facility primary, and Bidirectional Forwarding Detection triggers failover within seconds. The nightly transfer now finishes in under five hours, data transfer charges drop compared with internet egress, and a planned maintenance at one facility passes without any interruption to clinical systems.