The Full Connectivity Surface
coreadvancedAt a senior level the question stops being "how does a VPC work" and becomes "which of the eight ways to connect two networks is right here". Peering, Transit Gateway, VPN, Direct Connect, PrivateLink, VPC endpoints, NAT, and public internet each solve a different shape of problem, and each has a different cost and failure mode.
Think of it as
Two axes decide almost every choice: is this AWS-to-AWS or AWS-to-elsewhere, and does the traffic need to be private or merely secure? The answer picks the mechanism, and the remaining work is routing and address planning.
What we're doing: Decide between a peering mesh and a Transit Gateway as the VPC count grows.
- 1
- Peering is genuinely the right answer at small scale. Reaching for a hub on day one is over-engineering.
- 5
- The pain is quadratic in the number of route table entries, not just in the number of connections.
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- This is the tipping point in practice: the moment on-premises connectivity has to reach every VPC, the mesh stops scaling and the hub pays for itself.
Why this works: The mesh-versus-hub decision is arithmetic, not taste. Peering costs nothing hourly and scales quadratically in operational effort; Transit Gateway costs per attachment and per GB and scales linearly. Knowing where the crossover is for your estate is the senior-level part.
Expecting peering to be transitive
Wrong
Better
What you see: Traffic from A to C is silently dropped. Both peering connections are active, both route tables look correct, and nothing reports an error.
Why: VPC peering forwards traffic only between the two peered VPCs — routes learned through a peering connection are not re-advertised onward. Transit Gateway exists precisely to provide the transitive routing peering deliberately does not.
- AWS to AWS
- VPC peering — two VPCs, non-transitive, no hourly charge
- Transit Gateway — many VPCs + on-premises, transitive
- PrivateLink / endpoints — reach a service, not a network
- AWS to elsewhere
- Direct Connect — dedicated link, consistent latency
- Site-to-Site VPN — over the internet, encrypted, BGP
- NAT gateway — outbound only, to the internet
Choosing a connectivity mechanism
Together
Remember: Peering for two VPCs (non-transitive, no hourly cost); Transit Gateway for many plus on-premises (per attachment-hour, per GB); gateway endpoints for S3/DynamoDB (free, always add them); PrivateLink for private service access; Direct Connect or VPN for on-premises; centralize NAT rather than one per VPC.
See also: hub and spoke and address planning · multi az subnet architecture · vpc endpoints

