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What is AWS Transit Gateway? Everything You Need to Know

What is AWS Transit Gateway? Everything You Need to Know

We’ll go over what AWS Transit Gateway is and how it functions in this section. We’ll look at the necessity for a transit gateway in the AWS sector, how it works, and a few other fascinating connected sub-topics.

Given below are the following topics we are going to cover:

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What do You Understand From AWS Transit Gateway?

The Amazon Web Services (AWS) Transit Gateway is a fully managed service that acts as a central hub for managing connections between Amazon Virtual Private Clouds (VPCs), on-premises data centers, and other cloud networks. Providing a single point of control for network routing and security makes the process of routing traffic between several VPCs and external networks simpler.

Network administrators may quickly link VPCs to their on-premises data centers as well as VPCs located within the same region or across many regions by utilizing AWS Transit Gateway. This enables businesses to develop a secure and scalable network architecture that suits their unique requirements.

Through the simplification of managing numerous networks, AWS Transit Gateway makes network administration easier. Network managers may control all network traffic via a single gateway rather than having to manage intricate mesh networks. Because network misconfigurations may be time-consuming and challenging to fix, this streamlines the management process and lowers the chance of them happening.

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Why do We Need AWS Transit Gateway?

AWS Transit Gateway is necessary for organizations for a number of reasons. The goal of streamlining network administration is one of the key ones. Managing network traffic may become difficult and time-consuming when enterprises are required to connect to more VPCs, on-premises data centers, along with other cloud networks. In order to handle connectivity between various networks in a single hub, AWS Transit Gateway offers a solution that streamlines network administration and lowers the possibility of network setup errors.

The extensive features of AWS Transit Gateway are another factor that makes it necessary for businesses. By offering support for VPC peering, transit routing, and network segmentation. It enables businesses to create intricate network architectures that are tailored to their particular requirements. By doing this, enterprises may retain high levels of network performance while also meeting their unique security and compliance needs.

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AWS Transit Gateway Architecture

The architecture of AWS Transit Gateway follows a hub-and-spoke model. The Transit Gateway serves as the central hub, and VPCs and VPN connections are connected to it as spokes. This design simplifies network management and reduces the number of connections required for large-scale network environments.

When a VPC or VPN connection is attached to the Transit Gateway, it gains access to all other attached VPCs and VPN connections. This allows for transitive routing, enabling seamless communication between any VPC within the Transit Gateway, even if they don’t have direct peering connections with each other. This simplifies complex network architectures and reduces administrative overhead.

Additionally, AWS Transit Gateway supports up to 5,000 VPC attachments, making it suitable for large-scale deployments. It also allows overlapping IP address ranges among connected VPCs, which is not possible with traditional VPC peering.

With AWS Transit Gateway, routing is managed centrally, allowing you to create and propagate route tables to the attached VPCs. This central management makes it easier to handle routing changes and ensures consistent connectivity across the network.

How does AWS Transit Gateway Work?

The steps that need to be followed while working on AWS Transit Gateway are listed below:

How does AWS Transit Gateway Work

Step 1: Creation of Transit Gateway
Network administrators install a transit gateway in their AWS accounts and set up the gateway’s routing and security rules.

Step 2: Attachment of VPCs and Other Networks
Subsequently, network administrators establish connections between the transit gateway and Virtual Private Clouds (VPCs) or any desired network. They have the flexibility to link the transit gateway with multiple VPCs, including those associated with different accounts.

Step 3: Routing
After connecting the VPCs and other networks, network administrators set up the transit gateway’s routing policies. To route traffic between the connected VPCs and other networks, they can build routing tables. Numerous route methods are supported by AWS Transit Gateway, including VPN connections, transit routing, and VPC peering.

Step 4: Network segmentation
Network managers can divide their networks using AWS Transit Gateway. To divide various traffic kinds or to isolate various networks, they can establish several route tables.

Step 5: Management
Lastly, network managers have the capability to monitor and manage their network traffic through AWS Transit Gateway. They can configure security settings, analyze traffic flows, and troubleshoot network issues.

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AWS Transit Gateway and VPC Peering

While both AWS Transit Gateway and VPC peering provide communication to Amazon Virtual Private Cloud (VPC) networks, they differ significantly in a number of important areas:

AspectAWS Transit GatewayVPC Peering
PurposeConnect multiple VPCs and on-premises networksConnect two VPCs
Network ArchitectureHub-and-Spoke modelPoint-to-Point model
Number of ConnectionsSupports up to 5,000 VPC attachmentsSupports up to 125 VPC peering connections per VPC
Transitive CommunicationAllows transitive routing between VPCs and on-premisesDoes not allow transitive routing
RoutingCentralized route propagation and managementEach VPC must have explicit routes to reach the other VPC
ScalabilitySuitable for large-scale, complex network architecturesLimited scalability for a large number of VPCs
Communication Overlapping CIDRsAllows overlapping CIDRs between VPCs connected to the Transit GatewayRequires non-overlapping CIDRs between VPCs

AWS Transit Gateway Pricing

The pricing for AWS Transit Gateway is based on the following factors:

  1. Monthly Fee for each Transit Gateway: The fee varies based on the size of the Transit Gateway (small, medium, or large), and it is charged regardless of the number of attachments or routes.
    • Small: $0.05 per hour
    • Medium: $0.10 per hour
    • Large: $0.20 per hour
  2. Attachment Fee: There is a monthly fee for each attachment to a Transit Gateway, which depends on the type of attachment:
    • VPC attachment: $0.05 per hour
    • Direct Connect attachment: $0.005 per hour
    • VPN attachment: $0.005 per hour

In addition to the monthly fees, there are also some other charges associated with AWS Transit Gateway, such as:

  • Data Transfer Fees: There are data transfer charges for traffic that flows between a Transit Gateway and a VPC, Direct Connect gateway, or VPN gateway.
  • NAT gateway charges: There are charges for NAT gateways that are used with a Transit Gateway.
  • Route fee: There is a monthly fee for each route in a Transit Gateway, which is $0.000001 per hour.

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Benefits of AWS Transit Gateway

The following are some advantages of utilizing AWS Transit Gateway:

Benefits of AWS Transit Gateway
  • Provides a single point of control for traffic routing between VPCs and on-premises data centers, simplifying network administration.
  • Minimizes the need for several VPN connections and lowers data transmission expenses to cut costs.
  • Gives users more precise control over traffic filtering and routing, enhancing network security.
  • Allows for the implementation of hybrid architectures that combine cloud and local resources.

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Use Cases of AWS Transit Gateway

Some key use cases of AWS Transit Gateway include:

  • Centralized VPC connectivity: Transit Gateway enables seamless connectivity between multiple VPCs, allowing for centralized management and simplified network architecture.
  • Hub-and-spoke architecture: It facilitates the creation of hub-and-spoke network topologies, where the Transit Gateway acts as the central hub, connecting VPCs and on-premises networks in a scalable and efficient manner.
  • Hybrid cloud connectivity: Organizations can use Transit Gateway to establish secure connections between their on-premises data centers and AWS VPCs, enabling hybrid cloud architectures and extending their on-premises networks to the cloud.
  • Simplified network management: Transit Gateway simplifies network management by reducing the need for complex peering relationships between VPCs and minimizing the number of VPN connections required.


To summarize, AWS Transit Gateway is a cost-effective and flexible solution that can benefit businesses across various industries and sizes. Its advantages have made it a popular choice among network architects and IT professionals who aim to optimize their infrastructure and enhance network performance. Moreover, it boasts an incredibly user-friendly interface that simplifies its usage.

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