Understanding AWS Direct Connect Pricing: A Comprehensive Guide

by Waseem Hassan

What is AWS Direct Connect and its benefits?

AWS Direct Connect is a cloud service offered by Amazon Web Services (AWS) that allows customers to establish a dedicated network connection from their premises or data centre directly to an AWS region. This direct connection offers enhanced network performance, lower latency, and increased security compared to internet-based connections.  

Here are some key features of AWS Direct Connect: 

1. Dedicated Connection: AWS Direct Connect provides a dedicated, private connection between your on-premises network and AWS. This can improve performance and security. 
2. High Bandwidth Options: You can choose from various bandwidth options, ranging from 50 Mbps up to 100 Gbps, depending on your needs. 
3. Lower Latency: By using a direct connection, you can achieve lower latency and more consistent performance for your AWS workloads. 
4. Redundancy and Resilience: You can set up multiple Direct Connect connections to provide redundancy and increase resilience. 
5. Reduced Data Transfer Costs: In some cases, using Direct Connect may lead to reduced data transfer costs compared to using the public internet. 
6. Integration with AWS Services: AWS Direct Connect can be integrated with other AWS services such as Virtual Private Cloud (VPC) and Amazon Route 53 for advanced networking and routing options.  

In the Middle East region, Orixcom has a partnership with AWS and provides AWS Direct Connect services. This partnership helps customers in the region establish direct, dedicated connections to AWS infrastructure, offering the benefits of improved performance, security, and reliability for their cloud workloads. This collaboration provides customers with a seamless and efficient way to leverage AWS cloud services. 

BENEFITS:

AWS Direct Connect offers several key benefits around security, performance, and seamless integration with existing infrastructure and hybrid cloud environments: 

1. Enhanced Security and Reliability: 
   • Private Connection: AWS Direct Connect establishes a private connection directly to AWS, bypassing the public internet. This helps to minimise the risk of data exposure and unauthorised access. 
   • Data Isolation: By using dedicated lines, you can ensure that your data remains isolated from other internet traffic, further enhancing security. 
   • Consistent Bandwidth: Dedicated connections provide consistent bandwidth and performance, leading to more reliable and predictable network operations. 
2. Improved Network Performance and Reduced Latency: 
   • Lower Latency: Direct Connect provides a low-latency connection between your on-premises data centre and AWS, improving the responsiveness of your applications and services. 
   • Higher Throughput: Direct Connect offers high-bandwidth options that can provide faster data transfer rates compared to using the public internet. 
   • Consistent Performance: Since Direct Connect avoids the fluctuations of public internet traffic, you can expect more consistent and predictable network performance. 
3. Seamless Integration with Existing Infrastructure and Hybrid Cloud Environments:
   • Hybrid Cloud Enablement: Direct Connect supports hybrid cloud environments by allowing seamless communication between on-premises resources and AWS resources.
   • VPC Integration: Direct Connect integrates with Amazon Virtual Private Cloud (VPC), enabling you to connect your on-premises network directly to your VPCs and other AWS services.
   • Scalability: AWS Direct Connect can scale to accommodate your growing network needs, whether you need more bandwidth or additional connections.
   • Flexibility: You can choose the bandwidth and network options that best fit your needs, allowing you to customise the solution for your specific requirements.
   • Redundancy: Direct Connect can support redundant connections, providing failover options to maintain network availability in case of disruptions. 

AWS Direct Connect Pricing Overview 

AWS Direct Connect pricing components can vary based on several factors, including the bandwidth, port type, and the direction of data transfer. Here is a breakdown of the pricing components.  As an AWS Direct Connect Partner, Orixcom can provide a fast and resilient Direct Connect from 50mbps to 100Gbps of speed over shared and dedicated ports.  

Bandwidth: 

1. Pricing is dependent on the bandwidth of the connection you choose. Options range from 50 Mbps to 100 Gbps. 
2. Higher bandwidth options may have a higher cost but can offer improved performance and support for more data transfer. 

Dedicated Port or Shared: 

1. Dedicated Port: With a dedicated port, Orixcom reserves the entire port for your use, which may lead to higher costs but provides greater control and consistency in performance. 
2. Hosted Connection: A shared (hosted) connection allows you to utilise a portion of a larger connection managed by Orixcom. This option can be more cost-effective for smaller bandwidth needs. 

Connection location: 

1. Region: Pricing can vary depending on the AWS region you connect to. Each region may have different rates for Direct Connect connections. 
2. Cross-Region Connectivity: If you're connecting to an AWS region different from the one you are in, there may be additional charges for inter-region data transfer. 
   

How to optimise AWS Direct Connect Costs?

Optimising AWS Direct Connect costs involves several strategies and best practices that can help you manage and reduce expenses while maintaining the benefits of a dedicated connection to AWS. Here are some tips to optimise your AWS Direct Connect costs: 

1. Choose the Right Bandwidth: 

• Analyse your data transfer needs to select the appropriate bandwidth. Avoid overprovisioning, as higher bandwidth leads to higher costs. 
• Monitor your bandwidth usage regularly and adjust your Direct Connect plan as needed. 

2. Leverage Hosted Connections:

• Consider using a hosted connection provided by an AWS Direct Connect Partner, such as Orixcom. Hosted connections can offer more flexible bandwidth options and may be more cost-effective for smaller or variable usage. 

3. Optimise Data Transfer: 

• Reduce data transfer costs by minimising data sent over Direct Connect and using other AWS services for data processing and storage. 
• Utilise local edge services (e.g., Amazon CloudFront) for content delivery to minimise long-distance data transfers. 

4. Monitor Usage: 

• Use AWS CloudWatch and other monitoring tools to track your data transfer and bandwidth usage. This can help you identify potential cost-saving opportunities and areas where you can adjust your usage. 

5. Choose the Closest AWS Region: 

• Connect to the nearest AWS region to minimise latency and potential data transfer costs. 
• Utilise the AWS region closest to your office or data centre for optimal performance and cost efficiency. 

6. Consider Cross-Region Data Transfer: 

• Be mindful of data transfer costs across AWS regions. If you must transfer data across regions, calculate the associated costs and explore alternatives. 

7. Use AWS VPC Endpoints: 

• AWS VPC Endpoints allow you to access certain AWS services directly from your VPC, reducing the need for data transfer over Direct Connect. 

8. Review and Adjust Your Direct Connect Plan Regularly: 

• Periodically review your AWS Direct Connect plan to ensure it aligns with your usage and cost goals. Make changes if necessary to keep your costs to a minimum. 

9. Take Advantage of Volume Discounts: 

• AWS offers volume discounts for data transfer rates in some regions. Explore these options to reduce your overall costs. 

10. Evaluate Alternative Connectivity Options: 

• If your data transfer needs fluctuate frequently, consider alternative options such as VPN over the internet for less critical traffic or to supplement your Direct Connect connection. 

 AWS Direct Connect Locations  

The proximity of your on-premises data centre or office to an AWS Direct Connect location plays a crucial role in optimising network performance and costs. Being closer to an AWS Direct Connect location can help minimise latency and enhance the reliability of your connection. It also allows for a more direct route to AWS resources, improving overall network efficiency. 

AWS Direct Connect locations are strategically placed across various regions and availability zones to provide extensive coverage and availability with over 100 locations across the globe. This widespread network of locations enables businesses to establish connections to AWS that are close to their physical infrastructure, regardless of where they are based. The availability of Direct Connect in different regions and zones supports high availability and redundancy, helping organisations maintain continuous access to AWS services even in the event of localised outages or disruptions. As a result, businesses can achieve a robust, resilient, and performant connection to the cloud.  

Configuring AWS Direct Connect 

Setting up AWS Direct Connect involves several steps, including selecting the right connection type, configuring the connection, and establishing a link between your on-premises network and AWS. Here's a step-by-step guide to configuring AWS Direct Connect, along with configuration options and considerations for different use cases: 

Step-by-Step Guide: 

1. Determine Your Requirements 

• Bandwidth: Choose the appropriate bandwidth for your use case, ranging from 50 Mbps to 100 Gbps. 
• Connection Type: Decide whether you want a dedicated or hosted connection. 
• Region and Location: Choose the AWS region you want to connect to and identify the nearest Direct Connect location. 

2. Request a Connection

• Go to the AWS Management Console and navigate to the AWS Direct Connect service. 
• Choose your desired AWS region. 
• Create a new connection and specify the bandwidth and location you want to connect to. 

3. Wait for AWS Approval 

• After submitting your request, AWS will review it and approve your connection. This may take some time. 

4. Set Up the Connection 

• Dedicated Connection: If you are using a dedicated connection, AWS will provide you with the information you need to establish a physical connection from your on-premises network to the AWS Direct Connect location. 
• Hosted Connection: If you choose a hosted connection, you will need to coordinate with your AWS Direct Connect Partner (e.g. Orixcom) to set up the connection. 

5. Configure Your Network

• Virtual Interface (VIF): Create a virtual interface (public, private, or transit) to connect your on-premises network to AWS resources. 
• BGP Configuration: Configure Border Gateway Protocol (BGP) settings for your connection, as it is the routing protocol used by Direct Connect. 

6. Set Up Redundancy and Failover (optional): 

• For high availability and redundancy, consider setting up multiple Direct Connect connections. 
• Use BGP for automatic failover in case one connection goes down. 

7. Test the Connection

• Once your connection is set up, perform tests to ensure that data can flow between your on-premises network and AWS resources. 

8. Monitor and Manage Your Connection

• Use AWS CloudWatch and other monitoring tools to track the performance and usage of your Direct Connect connection. 

9. Configuration Options and Considerations: 

• Private Virtual Interface: Use this option for a direct connection between your on-premises network and your VPC. It's ideal for hybrid cloud environments and accessing AWS services within your VPC. 
• Public Virtual Interface: This option provides access to AWS public services such as Amazon S3 and DynamoDB over Direct Connect. Use this for workloads that require access to public AWS services. 
• Transit Virtual Interface: This option allows you to connect your on-premises network to a Transit Gateway. This can be useful for connecting multiple VPCs and on-premises networks. 
• SD-WAN Integration: If you use a software-defined wide area network (SD-WAN), ensure compatibility with AWS Direct Connect and configure the appropriate routing. 
• Consider Security: Implement security measures such as encryption for data transfers and access controls to protect your data and AWS resources. 
• Review Costs: Be aware of potential data transfer costs, especially for cross-region data transfers. Monitor your usage to optimise costs. 

Conclusion  

Understanding AWS pricing is key to maximising the value of your investment in AWS services. By familiarising yourself with the various pricing models, such as on-demand, reserved instances, and spot pricing, as well as additional cost factors like data transfer and storage costs, you can make more informed decisions about which services and pricing options best align with your needs.  

Additionally, taking advantage of tools such as the AWS Pricing Calculator and AWS Cost Explorer can help you estimate costs and monitor your spending over time. With careful planning and regular monitoring, you can optimise your AWS usage to achieve cost savings while still meeting your business goals.   

As AWS continues to evolve its offerings and introduce new services, staying up-to-date with changes in pricing models and best practices will help you maintain control over your cloud spending. By incorporating these strategies into your cloud management approach, you can leverage AWS's full potential while keeping your budget in check.

FAQs 

1. What are the types of AWS Direct Connect connections? 
   There are two types of AWS Direct Connect connections: Dedicated Connections and Hosted Connections. Dedicated Connections are when you establish a private connection directly from your on-premises data centre or office to an AWS Direct Connect location. These connections offer dedicated bandwidth and are ideal for organsations with consistent, high-bandwidth needs. Hosted Connections are provided by AWS Direct Connect Partners, such as Orixcom, allowing you to utilise a portion of a larger, shared connection. Hosted Connections offer more flexibility and cost-effective options, especially for organisations with variable or lower bandwidth requirements. Read this blog on AWS Direct Connect Dedicated vs Hosted to know the detailed comparison between the two connection types.
   
   
2. How does AWS Direct Connect Gateway pricing differ from standard Direct Connect pricing? 
   AWS Direct Connect Gateway pricing differs from standard Direct Connect pricing primarily in its cost structure. While standard Direct Connect pricing includes charges for the connection port and data transfer, Direct Connect Gateway adds an additional layer of costs for the gateway service itself. Direct Connect Gateway charges a per-GB data processing fee for data that passes through the gateway when connecting to multiple VPCs across different AWS regions. This fee is in addition to the regular Direct Connect port and data transfer costs, making it important to assess whether the gateway's benefits justify the additional expenses based on your network architecture and use case. 
   
   
3. What is difference between VPN and AWS Direct Connect? 
   AWS Direct Connect and VPN are two distinct methods for connecting your on-premises network to AWS, each with its own advantages and use cases. AWS Direct Connect provides a dedicated, private network connection directly to AWS, offering lower latency, consistent bandwidth, and enhanced security. This is ideal for high-volume data transfer and latency-sensitive applications. VPN, on the other hand, uses the public internet to create a secure, encrypted connection between your network and AWS, making it more cost-effective and easier to set up but potentially subject to variable performance and latency. VPN is best suited for occasional or lower-volume data transfer and quick deployment scenarios.