AWS Transit Gateway vs VPC Peering


As you may know, AWS Transit Gateway and VPC Peering are two different methods of connecting your networks together. They both allow you to connect your on-premises network with an AWS Virtual Private Cloud (VPC), but they do so in different ways. In this article, we’ll explain how each works and how they differ from one another so that you can decide which one is right for your business needs.

What is AWS Transit Gateway?

AWS Transit Gateway is a service that allows you to connect your VPCs with other AWS accounts. This enables you to create a private connection between your networks, so that you can transfer data between them without going through the public internet.

The AWS Transit Gateway uses Virtual Private Network (VPN) technology to provide secure access between your VPCs and other AWS accounts. You can use this functionality for many purposes, including:

  • Sharing resources across multiple VPCs in different regions or countries (for example, sharing databases across multiple DevOps teams).
  • Enabling cross-account access for customers who want their own dedicated resources but don’t need full control over those resources’ configuration settings.

What is AWS VPC Peering?

AWS VPC Peering is a connection between two VPCs that allows you to route traffic between them. You can use this feature to extend your network into another AWS account, or connect your on-premises network with an AWS-hosted service such as Amazon S3 or Amazon Elastic Compute Cloud (EC2).
When you peer two VPCs, they become part of the same logical routing table, which means that all routes in one VPC are available to all other peered VPCs within the same region. This allows you to send traffic between these virtual networks without having to go through public internet gateways or NAT gateways–and it gives you more control over where your data travels.

Key Differences Between AWS Transit Gateway and AWS VPC Peering

  • Scalability: Transit Gateway is limited to a single region, while VPC Peering can span multiple regions.
  • Security: Transit Gateway uses shared IP addresses, which means that your applications may be exposed to malicious attacks from other customers of the service. In contrast, VPC Peering uses private IP addresses that are only accessible within your own account and region.
  • Cost: Transit Gateway charges $0.05 per GB transmitted through its gateway; however, you must pay for both ingress and egress traffic separately (i.e., if you send 100GB outbound from one instance but receive 200GB into another instance on the same account). In contrast, there are no fees associated with setting up VPC Peering between two AWS accounts–you just need to ensure that they’re in different regions before configuring it!

Real-Time Examples of AWS Transit Gateway and AWS VPC Peering

  • Example 1: Connecting Multiple VPCs
    You have two VPCs, one in the US East region and one in the Europe West region. You want to connect them so you can send traffic between them. The AWS Transit Gateway is a good option for this scenario because it supports multiple VPC peering connections between regions, and it provides an easy way to set up those connections from your own network into each VPC’s gateway endpoint (or “transit endpoint”).
  • Example 2: Connecting On-Premise to Cloud


The AWS Transit Gateway is a network service that allows you to connect your VPCs with other AWS accounts. You can use it to create connections between your VPC and your customer’s VPCs, or between two different accounts in your own account.
The main difference between these two solutions is that the Transit Gateway is a managed service, while peering requires manual configuration of routers and firewall rules.

Fun fact

AWS is fully committed in going green by using renewable sources of energy. Approximately 25% of AWS uses renewable source of energy.

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