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A virtual private cloud (VPC) is a public cloud environment that a host isolates as part of its resources for a specific user. Since a VPC is part of a public cloud, it shares the same cloud infrastructure as the public cloud, but only the user can access it. This feature makes VPC a safer option than the public cloud. A VPC can connect the private or hybrid cloud resources to the internet via a virtual private network (VPN) and encrypted channels through gateways and routers.
Because of the resource isolation, a VPC has a higher level of security and customization capabilities than a public cloud. Users can create custom VPN connections, virtual LAN (VLAN), access control lists (ACL), routing rules, subnets, private IP addresses, and more. Companies that require the data compliance feature of the private cloud can benefit from the scalability, affordability, and flexibility of the public cloud with VPC. Companies can also set VPN connections to enable hybrid and multicloud environments.
What Does VPC Stand For?
VPC stands for virtual private cloud. The term refers to a remote host server virtualization that is isolated from the public cloud. Amazon Web Services (AWS) and Google coined the term a decade ago when they first offered this service.
The following are some core features within VPC that can help users to deploy, manage, and optimize VPC environments:
Custom virtual machine: In cloud computing, a virtual machine (VM) is a virtualized computer in a cloud server. VPC allows users to create virtual machines to meet specific needs and optimize performance. Users can usually specify CPU, GPU, and geographical zones. VM also supports different operating systems such as Linux and Windows.
Central management: VPCs’ internet management API tools will provision networks, balance loads, and manage traffic. Some vendors also offer storage management tools to handle data storage, database configuration, integration, and scaling. This allows the user to have a central management tool to manage their cloud networks.
Security: With encrypt data and VPN connection, VPC firewalls can deny unauthorized access such as stolen credentials and malware. The host also provides maintenance to existing virtual machines to improve functionality and security. Therefore, VPC is a very safe and secure hosting method.
Scalability: VPC computing power can grow to accommodate demand without reducing functionality. Capability upgrade doesn’t require server downtime or significant infrastructure investment.
Scalable resource: VPC is flexible because it retains public cloud computing's scalability and elasticity. Users can allocate additional public cloud resources to their VPC at any time. Some vendors also allow companies to autoscale the computing power they need based on real-time demand. By comparison, a private cloud is not as flexible as a VPC due to its on-premises physical limitations.
Flexible configuration: Since the users have a greater level of control in a VPC than in a public cloud, they can configure network access control lists, IP addresses, API tools, etc. This flexibility provides enhanced user management and customized interaction between on-premises hardware and the cloud.
High availability: Because a VPC runs on the public cloud, it shares the same uptime as the public cloud. Many host providers have multiple data centers so that if one data center goes down, another will serve as a disaster recovery server. These data centers are also spread across the globe so customers can access VPC anywhere without bandwidth delay.
Saving cost: For a private cloud to be as scalable and reliable as a public cloud, companies not only need to invest in multiple data centers and backup servers but also hire new staff to maintain them. With a VPC, companies only need to pay an hourly rate, per gigabyte used, or both. This saves a significant amount of capital expenditure and maintenance fees.
Unique security offering: VPC has a unique security offering compared to public and private cloud. A VPC isolates itself from a public cloud for one specific user, whereas a public cloud allows multiple user access. With endpoint isolation, a VPC platform is inherently safer than a public cloud platform. Since a private cloud is completely isolated from its public cloud, a private cloud can be safer than VPC. However, the added safety comes with higher maintenance costs because private cloud users need to maintain their own security updates.
Generally, only cloud developers and architects understand how to properly set up VPC. They enable other teams to build and use the software on top of the VPC environment.
Alternatives to VPC can replace this type of software, either partially or completely:
Virtual private server (VPS) hosting providers: VPS offers access to computer servers with rentable virtual machines that act as if they were each a unique server in and of itself. If elasticity, scalability, global connectivity are not top priorities, then the business should consider VPS. Companies prefer VPS for web hosting and remote access applications.
Infrastructure as a service (IaaS): IaaS describes the various ways in which third-party vendors provide cloud-driven, cloud-hosted infrastructure to businesses. The general offering of IaaS is a default public cloud that shares the same infrastructure. It could be a cheaper alternative if the business doesn't need an additional level of security.
Managed hosting services: Since server maintenance requires a significant amount of time and IT resources, companies can purchase rental servers that are managed by cloud service providers. While it is less scalable, managed hosting services can meet data compliance standards that the public cloud providers can’t.
Integration: Setting up VPC requires the advanced network architecture to set up network access control lists (NACL), subnets, and security groups. Users need to be familiar with their cloud architecture before they add the VPC layer.
Security: VPC represents a shift of security responsibility from the vendor to the user. Users should understand their security technology and encryption needs to meet the compliance requirements. Companies with high compliance requirements, inexperienced security teams, or little experience managing complex computing environments need to grow their cloud talents before jeopardizing their data and reputation.
If a company is just starting to purchase the first VPC solution, or maybe an organization needs to upgrade their cloud system--wherever a business is in its buying process, g2.com can help select the best VPC solution for the business.
To purchase a VPC solution, the buyer should review the business case. Does the company need VPC in the first place? A VPC solution mainly provides customizable security and VPN connection to local hardware. Users must check the compliance requirements and list them out. If the company has determined that the VPC security isn’t enough or is not needed, then it should consider buying private cloud, public cloud, or managed services providers. Also if the users have legacy hardware, then they also need to consider how to set up VPN connections to legacy hardware. The organization needs to have human resources who understand VPC architecture and legacy hardware. Therefore, the buyer should outline technical requirements, budgetary considerations, staffing limitations, and required integrations.
Create a long list
Once the requirements are outlined, buyers should rank the tools by priority and identify the ones with as many of the features that fit the budget window. It is recommended to restrict the list to products with desired features, pricing, data center locations, and deployment methods to identify a dozen or so options. For example, if the business needs a VPC that has data centers across the globe, then over half of the vendors will be eliminated.
Create a short list
Once the long list is limited to affordable products with the desired features, it’s time to search for third-party validation. At this point, for each tool, the buyer must analyze end-user reviews and analyst reports. G2 reports and product comparison analysis are good tools to use in this case. Combining these specified factors should help rank options and eliminate poorly performing products.
Conduct demos
With the list narrowed down to three to five possible products, businesses can reach out to vendors and schedule demos. This will help to get first-hand experience with the product, ask targeted questions, and gauge the vendors’ quality of service.
Choose a selection team
To choose a selection team, decision makers need to involve subject matter experts from all teams in the company that will use the system. When purchasing VPC software, this selection team primarily involves IT managers, developers, and security staff. Any manager or department-level leader should also include individuals managing any solution the legacy hardware will be integrating with.
Negotiation
Depending on the maturity of the business, the seniority of the negotiation team when buying VPC solutions may vary. It is advisable to include relevant directors or managers in the security and IT departments as well as from any other cross-functional departments that may be impacted.
Final decision
If the company has a chief technology officer (CTO), that individual will likely make the decision. If not, companies must trust their security professionals’ ability to use and understand the product.
VPC essentially is an added cost on top of the public cloud. So the users only pay for usage instead of infrastructure. Additional costs may include internet gateway and VPN connection. VPC services are usually charged by hours and data used. The price can vary based on server capacity and server locations. If the buyer already has a public cloud vendor, then it is best to check their price first and use it as a reference.
Companies should also consider hiring cloud architects who are familiar with the vendor’s VPC products. A VPC architecture design can be very complex depending on the buyer’s legacy system configuration and the required security level. While a cloud architect is expensive ranging from $100,000 to $200,000 a year, the security risk might cost more in the future.
The public cloud versus VPC solution dichotomy will be the most important factor to be considered for ROI. VPC will likely have a slower ROI because it builds on top of the public costs. Public cloud solutions will be less expensive but have a lower level of security.