For these reasons, VPNs tend to be best suited for low-volume data transfer to the Cloud Service Provider. This enables organizations to take advantage of the inherent simplicity of the VPN service without experiencing exorbitant costs or significant impact from performance issues.

Dedicated Interconnects Offer Speed, Flexibility, and More Security

A dedicated interconnect from the CSP is another option. This is a high-bandwidth private link connecting an enterprise network directly to the CSP network, thereby bypassing public Internet. This is usually offered at 1 Gbps or 10 Gbps and provides multiple VLAN connections over one single interconnection.

Dedicated interconnects are used in many scenarios, including:

• When enterprises require high-capacity connections with high-volume data transfer for storage. This can be an especially compelling option during the “lift and shift” of a cloud migration, when companies are extracting large amounts of data from existing environments and moving it to a new one all at once.
• When enterprises require a hybrid cloud network architecture, connecting an on-premise data center with the cloud data centers. Many organizations continue to operate in a hybrid environment. Very often this is temporary, as the customer undertakes a complete migration to a public cloud environment, but plenty of organizations choose to operate in a hybrid environment for other reasons.
• For certain applications that require a more predictable connection with lower latency. Common applications that fall into this category are voice and video, as higher latency on a network can lead to a degraded user experience. To maintain acceptable performance levels with these types of applications, a dedicated interconnection can be a great solution.
• When some applications require a higher level of security than can be provided through a simple Internet connection. A dedicated interconnection can deliver a more secure connection to these applications. 

Most, if not all, of the major public cloud providers offer financial incentives for customers to adopt private interconnection by reducing the outbound charges associated with public Internet. A dedicated interconnect can lower cloud egress costs by as much as 60 percent depending on the cloud provider. The lower egress costs should be factored in versus the high monthly costs of the dedicated interconnect service and the private link to the CSP.

Partner-Based Dedicated Interconnection Addresses Smaller Bandwidth Needs

Another option that can deliver similar benefits to a dedicated CSP interconnection is a partner-based interconnection. One key difference between the two is that partners can offer service at smaller bandwidth increments—typically as little as 50 Mbps.

In this instance, the service is offered by CSP partner network service providers. Enterprises can use this service when they have an existing WAN provider or colocation partnership that can offer an interconnect to the CSPs. It is a good option when enterprises require dedicated links in smaller bandwidth increments. It can also address the needs of a wider range of customers. The shift to the cloud is affecting more than just the largest enterprises. With smaller bandwidth options available, more businesses can take advantage of the performance and security benefits of a CSP interconnection.

Here are some reasons why using a partner-based dedicated interconnection makes sense:

• Just like with a dedicated interconnect, customers can benefit from lower latency, better performance, and tighter security.
• Customers are not limited to CSP on-ramps. As they partner with network service providers, they typically have more options to access on-ramps via the NSP’s network. This can be in the form of a private link, colocation, MPLS network, or SD-WAN network.
• There are lower data transfer prices than via public Internet.
• Partner-based dedicated interconnections are typically less expensive than dedicated interconnects from CSPs.

Cloud Networking’s Future Has A Lot to Offer

The demand for cloud networking is set to grow rapidly to fulfill the emerging and increasingly complex networking requirements of cloud infrastructures. In fact, 27.5 percent of some 200 IT leaders surveyed in a recent Cloudreach-sponsored IDC study agreed that large-scale cloud migrations were “essential for business survival” going forward. 

Innovative technology is constantly evolving to enable the design, deployment, and operation of a network inside cloud environments to allow for consistent security policies, user experience, and visibility. Solving the issues of getting reliable, predictable, and consistent network connectivity to an organization’s cloud infrastructure is the new normal and will be one of the many exciting developments in the coming years.