What Is Amazon VPC? (All You Need To Know)

Sure, shopping on Amazon is great, but have you ever checked out the array of digital business solutions from Amazon Web Services?

If you’re a business owner, manager, or developer, then it’s certainly worthwhile to check out AWS programs, including Amazon VPC.

So what is Amazon VPC and how does it work for your business? I found all these answers and more, so read more in this detailed guide to Amazon VPC!

What Is Amazon VPC In 2024?

Amazon Virtual Private Cloud is a virtual network for launching scalable Amazon Web Services. Amazon VPC is similar to a traditional data center network, except it’s a virtual cloud that offers full control over network gateways, IP addresses, and route configurations. As an integral AWS program, there is no additional fee to establish and use Amazon VPC.

Keep reading for all you should know about Amazon VPC, including what the virtual cloud does and how you can access it.

What Does Amazon VPC Do?

Amazon VPC provides a virtual cloud network with optimal privacy and reliable management over IP addresses, subnets, configurations, and gateways.

With Amazon VPC, you can establish a VPN connection between the network and a corporate data center, essentially extending the power and capacity of your data storage and network.

Another advantage of this cloud network is the numerous customization options to best suit your business operations, including secure groups for approved access only.

Subnets may be public for internet web services or private without internet for backend databases and app services.

Whether you’re using Amazon EC2 or another computing cloud, you can set up Amazon VPC for a reliable virtual network on the AWS cloud, free of physical data centers, hardware, or VPNs.

What Are Amazon VPC Concepts?

What Are Amazon VPC Concepts?

There are a few key concepts to consider when implementing Amazon VPC as the EC2 networking layer, starting with virtual private cloud, which refers to the virtual network customized to your AWS account.

Other core Amazon VPC concepts include:

  • Egress-only Internet Gateway: access for data transition to an external location, specifically IPv6 traffic from the virtual cloud to the web.
  • Internet Gateway: the Amazon VPC connection to a public internet server.
  • NAT Gateway: short for Network Address Translation (NAT) gateway, which offers a readily available managed service for private subnet internet access.
  • Peering Connection: uses virtual private clouds to send IP addresses to their target.
  • Subnet: part of the IP address range on Amazon’s virtual cloud, supporting isolated groups.
  • VPC Endpoints: offer private connections to other AWS services without a gateway, NAT, VPN, or firewall proxy.

How To Sign Up For Amazon VPC?

To begin using Amazon VPC gateways, you first need to be signed up to the AWS Console.

Once signed in, you’ll see a default VPC on the management page, and you can select “Start PVC Wizard” to create a personalized virtual private cloud.

There are four network options to choose from, depending on subnet privacy preferences and VPN access requirements for different AWS sites.

Once you select your desired setup, you’ll be able to change the IP address range and size across the overall VPC and subnets.

Remember that for hardware VPN access, the IP address needs to be specified to ensure uninterrupted connections.

For more information and to get started through the signup process, visit aws.amazon.com/vpc/.

How Much Does Amazon VPC Cost?

If you’re already using other Amazon Web Services, then it makes sense to implement Amazon VPC too, because there are no costs to run this virtual cloud on top of those AWS programs.

However, costs apply for EC2 and other web services when transferring and storing data.

There is a fee involved for Amazon VPC connections to corporate data centers, with pricing based on the amount of time the VPN access is up and running.

Although there is no additional cost for the actual VPC, some charges may apply for traffic mirroring or the Reachability Analyzer or NAT gateways.

It’s optional to connect VPNs and move data, with applicable charges outlined on the Amazon VPC Pricing page.

To know more, you can also read our posts on what is Amazon Vine, what is Amazon Kinesis, and why do Amazon prices change.


Amazon Virtual Private Cloud, or Amazon VPC, has the advantage when it comes to building a virtual cloud network.

It makes the most of existing AWS cloud servers as Amazon EC2’s networking layer, providing enhanced security for current users on Amazon Web Services.

With Amazon VPC, you can set up your own network space and have full control over interactions with the internet.

Amazon VPC offers public and private subnets depending on your access requirements for databases and applications.

Remember, there is no extra charge for using Amazon VPC, only the costs associated with other AWS solutions like Amazon EC2.

That means you may as well make the most of this private cloud program if you’re already paying for AWS programs, especially if you want to move away from a physical data facility.

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Marques Thomas

Marques Thomas graduated with a MBA in 2011. Since then, Marques has worked in the retail and consumer service industry as a manager, advisor, and marketer. Marques is also the head writer and founder of QuerySprout.com.

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