Hello, I'd like to clarify the key differences between VNet peering and VPN Gateway in a cloud architecture. In which scenarios should each be preferred? Particularly, what advantages do they offer in terms of co-location access, global network structure, and cost comparison? I'd appreciate insights from your experiences.
What are the differences between VNet peering and VPN Gateway?
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I remember struggling with network performance when using a VPN Gateway for a project where I needed secure access to a co-location datacenter network. The latency was terrible due to low bandwidth and high delay. Then we switched to VNet peering, and everything improved dramatically. Communication between two VNets in the same Azure region went from 50ms latency to just 1ms, and bandwidth naturally increased. For co-location access, VNet peering clearly outperformed VPN Gateway in both performance and natural integration.
When comparing costs in a global network setup, VNet peering was the clear winner. Peering within the same Azure region is free, and even when used across regions, it was 60-70% cheaper than a standard VPN Gateway. Of course, VPN Gateway still has its place (like in hybrid cloud setups), but VNet peering simplifies the architecture by making everything feel like it's on the same network.