cloud professional services

Apr 4, 2024 1:31:17 PM by Tal Helfgott

Slash Your AWS Networking Costs with VPC Endpoints

FinOps & Cost Opt., AWS, Cloud Native, Transit Gateway, Cloud Computing

Efficiently managing networking costs without compromising on security is a significant challenge in cloud infrastructure design. Virtual Private Cloud (VPC) Endpoints provide a streamlined solution to this issue, offering secure, direct connections to AWS services that bypass expensive, traditional data transfer methods. This piece delves into the mechanics and benefits of VPC Endpoints, highlighting their crucial role in reducing operational overhead while maintaining the integrity of private subnet communications.

When designing your AWS infrastructure, it’s essential to consider the costs associated with data transfer, particularly when using private subnets. Many customers rely on NAT Gateway to enable communication between resources in private subnets and AWS services, but this convenience comes at a significant cost. By leveraging AWS VPC Endpoints, you can dramatically reduce your networking expenses while maintaining the security and isolation of your private subnets.

The High Price of NAT Gateway

NAT Gateway is a solution for allowing resources in private subnets to communicate with AWS services. However, it comes with a hefty price tag. AWS charges $0.045 per GB of data processed by NAT Gateway. This may not seem like much, but it can quickly accumulate, especially if you have substantial volumes of data being transferred between your private resources and AWS services.


Real-World Example: Networking Cost Savings with VPC Endpoints

Let's consider an example to showcase the networking cost savings achieved by using VPC Endpoints. Imagine you have an application running on an EC2 instance in a private subnet. The application needs to communicate with AWS services such as S3 and DynamoDB.
The application transfers 500 GB of data to S3 and 200 GB of data to DynamoDB per day.

Without VPC Endpoints, you would need to use a NAT Gateway to enable the EC2 instance to communicate with S3 and DynamoDB. The monthly networking costs with NAT Gateway would be:

- NAT Gateway: (500 GB + 200 GB) * 30 days * $0.045 per GB = $945
Total monthly networking cost with NAT Gateway: $945

Now, let’s explore how VPC Endpoints can significantly reduce these networking costs:


Option 1: S3 VPC Endpoint:

  • Create an S3 VPC Endpoint to establish a direct connection between your VPC and S3.
  • Eliminates NAT Gateway costs for S3 traffic.
  • No data transfer charges between EC2 and S3 within the same region.

Option 2: DynamoDB VPC Endpoint:

  • Create a DynamoDB VPC Endpoint to establish a direct connection between your VPC and DynamoDB.
  • Eliminates NAT Gateway costs for DynamoDB traffic.
  • No data transfer charges between EC2 and DynamoDB within the same region.

With VPC Endpoints, the monthly networking costs for accessing S3 and DynamoDB would be:

  • S3 VPC Endpoint: $0
  • DynamoDB VPC Endpoint: $0

Total monthly networking cost with VPC Endpoints: $0

By using VPC Endpoints instead of NAT Gateway, you save $945 per month on networking costs, a 100% reduction!


AWS VPC Endpoints offer a cost-effective solution for enabling communication between resources in private subnets and AWS services. By eliminating the need for an expensive NAT Gateway, VPC Endpoints can lead to substantial savings on your AWS networking expenses. As illustrated in the real-world example, utilizing VPC Endpoints for services like S3 and DynamoDB can result in significant cost reductions. When architecting your AWS environment, consider implementing VPC Endpoints for supported services to optimize networking costs without sacrificing security or performance.

For optimal cloud efficiency and security, consider partnering with experts like Cloudride. Our expertise in deploying VPC Endpoints and other cloud optimization strategies can help unlock even greater savings and performance gains, ensuring your infrastructure not only meets current needs but is also poised for future growth. Contact us today to explore how your organization can benefit from tailored cloud solutions.


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