Question

Difficulty: HardCost-Effective Network Routing and Data Transfer Optimization

An enterprise operates a multi-VPC architecture in the `eu-west-1` Region. An ETL application running on Amazon EC2 instances in VPC A (Production) regularly extracts large datasets from an RDS MySQL database and transfers 120 TB120\text{ TB} of data monthly to an Amazon Redshift cluster in VPC B (Analytics). Currently, all inter-VPC traffic is routed through an AWS Transit Gateway. A solutions architect is tasked with optimizing the network design to reduce monthly data transfer costs without introducing network performance bottlenecks. Which routing strategy is the most cost-effective?

  1. Establish a VPC Peering connection between VPC A and VPC B, and update the route tables in both VPCs to route the database traffic through the peering connection.Answer
  2. B
    Deploy NAT Gateways in the private subnets of VPC A and VPC B, and configure the application to transfer the data over the public internet.
  3. C
    Configure an AWS Site-to-Site VPN connection between the two VPCs using Virtual Private Gateways, and route the database traffic through the IPsec tunnels.
  4. D
    Create an AWS PrivateLink endpoint service for the Amazon Redshift cluster in VPC B, and provision an interface VPC endpoint in VPC A to transfer the data.

Answer

Establish a VPC Peering connection between VPC A and VPC B, and update the route tables in both VPCs to route the database traffic through the peering connection.
Establishing a VPC Peering connection directly between VPC A and VPC B is the most cost-effective solution. VPC Peering does not charge hourly fees or data processing fees. It only charges standard intra-region data transfer rates (which are free within the same Availability Zone or cost 0.01perGBineachdirectionacrossdifferentAvailabilityZones).Byroutingthe0.01 per GB in each direction across different Availability Zones). By routing the 120\text{ TB}ofdatathroughaVPCPeeringconnectioninsteadofAWSTransitGateway,thecompanyavoidsthe of data through a VPC Peering connection instead of AWS Transit Gateway, the company avoids the 0.02 per GB Transit Gateway data processing fee, saving $2,400\$2,400 monthly.

Step-by-Step Solution

1
Analyze the current architecture and identify the cost drivers.
Current data transfer of 120 TB120\text{ TB} (120,000 GB120,000\text{ GB}) over AWS Transit Gateway incurs a data processing fee of 0.02 per GB0.02\text{ per GB} in `eu-west-1`, resulting in 120,000×0.02=$2,400120,000 \times 0.02 = \$2,400 per month in processing charges alone (excluding attachment fees).
Understanding the cost breakdown of the current architecture allows us to identify the primary driver of high network expenses.
2
Evaluate alternative inter-VPC routing options in terms of data processing cost, hourly fees, and throughput limits.
VPC Peering charges $0 per GB\$0\text{ per GB} for data processing. AWS PrivateLink charges $0.01 per GB\$0.01\text{ per GB} for data processing. NAT Gateways charge $.045 per GB\$.045\text{ per GB} for data processing. Site-to-Site VPN is limited to 1.25 Gbps1.25\text{ Gbps} per tunnel and incurs internet egress fees.
Comparing the processing costs and performance constraints of each service helps determine which routing mechanism minimizes overhead.
3
Select the option that eliminates data processing fees without introducing bandwidth constraints.
VPC Peering is selected because it completely bypasses the Transit Gateway's data processing fee and provides unconstrained line-rate performance between the two VPCs.
VPC Peering offers direct, private connectivity with no processing fee, making it the most cost-effective and highest-performing routing choice.

Key Concept

Selecting the most cost-effective network routing mechanism based on data volume, where VPC Peering is preferred over AWS Transit Gateway and AWS PrivateLink for high-volume traffic due to the absence of per-GB data processing fees.
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