AWS Direct Connect vs Azure: Key Differences

AWS Direct Connect and Azure ExpressRoute are both dedicated private network connections from your on-premises infrastructure to a cloud provider, but they are not interchangeable products—each works only with its own cloud. This article compares the two services directly, covering how they work, what they cost, and how to choose between them for your organization.

Background: Why Dedicated Connections Exist

Most cloud traffic travels over the public internet, which is fine for many workloads but introduces variability: latency spikes, packet loss, and exposure to DDoS attacks. For hybrid cloud architectures—where you run part of your infrastructure on-premises and part in the cloud—a dedicated private connection provides consistent network performance, lower latency, and a more secure path. AWS Direct Connect and Azure ExpressRoute are the two dominant offerings, each tied to its respective cloud platform. They are not competitors in the sense that you could use either for the same cloud; you choose based on which cloud you use (or both, if you are multi-cloud).

How AWS Direct Connect Works

AWS Direct Connect establishes a physical, dedicated network link between your data center or office and an AWS Direct Connect location (a colocation facility). You work with an AWS partner or a network provider to extend a cable from your router to the AWS router in that facility. Once the physical connection is up, you create virtual interfaces (VIFs) to access AWS services:

• Private VIF—connects to your Amazon VPC, allowing access to private IP addresses and resources like EC2 instances.
• Public VIF—connects to public AWS services (S3, DynamoDB, etc.) using public IPs, but over the private link instead of the internet.
• Transit VIF—connects to AWS Transit Gateway, enabling multiple VPCs to be reached through a single connection.

You can order a 1 Gbps or 10 Gbps dedicated port, or choose a hosted connection from a partner at lower bandwidths (e.g., 50 Mbps to 500 Mbps). AWS charges a monthly port fee plus data transfer fees for traffic leaving AWS (egress). Ingress is free.

How Azure ExpressRoute Works

Azure ExpressRoute is functionally similar but uses different terminology. You create an ExpressRoute circuit through a connectivity provider (like a carrier or colocation provider). The circuit connects your on-premises network to Azure via a private, dedicated link. Key components:

• Private peering—connects to your virtual network (VNet) for private IP traffic.
• Microsoft peering—connects to Microsoft public services (Office 365, Dynamics 365, Azure public services) over the private link.
• ExpressRoute Gateway—a gateway object in your VNet that routes traffic to the circuit.

Azure offers bandwidth options from 50 Mbps to 100 Gbps, depending on the provider and port type. Pricing includes a monthly port fee (for dedicated circuits) and data transfer charges for egress. Like AWS, ingress is free.

Cost Comparison: What You Pay For

Both services use a similar pricing model: a recurring port fee plus data transfer costs. However, the details differ:

• AWS Direct Connect—Port fees start at around $36/month for a 1 Gbps hosted connection (via partner) and go up for dedicated 10 Gbps ports. Data transfer egress is billed per GB, with tiered pricing that decreases as volume increases. You also pay for the physical cross-connect at the colocation facility (often a one-time fee).
• Azure ExpressRoute—Port fees for dedicated circuits start at around $40/month for 50 Mbps and scale with bandwidth. Data transfer egress is billed per GB with similar tiering. You also pay the provider for the last-mile connection.

Both services require you to pay for the underlying physical infrastructure (cabling, cross-connects) which is often billed by the colocation provider or network partner. In practice, the total cost is comparable, but you must compare specific bandwidth and usage levels to get an accurate picture.

How to Choose: Key Factors

Choosing between AWS Direct Connect and Azure ExpressRoute is usually not a choice—it depends on which cloud you use. But if you are evaluating both clouds, consider these factors:

• Cloud provider—If you are all-in on AWS, Direct Connect is the only option. For Azure, ExpressRoute is the only option. There is no cross-compatibility.
• Bandwidth needs—Both offer similar ranges, but Azure has more options at the low end (50 Mbps) which can be cheaper for small workloads.
• Geographic coverage—AWS has more Direct Connect locations worldwide than Azure ExpressRoute locations, which might matter for global reach.
• Integration with other services—AWS Direct Connect integrates tightly with AWS Transit Gateway and Direct Connect Gateway, while Azure ExpressRoute works with Azure Virtual WAN. Your existing network architecture might favor one.
• Multi-cloud strategy—If you use both AWS and Azure, you may need both connections, or you could route through a single provider that offers both (e.g., a network provider that resells both services).

Common Problems and Misconceptions

One common misconception is that Direct Connect and ExpressRoute are redundant—that you can use one for both clouds. They are not; each is a separate service with its own physical connection. Another issue is redundancy: a single dedicated connection is a single point of failure. Both AWS and Azure recommend setting up multiple connections (active/active or active/passive) for high availability. This doubles the cost, but for critical workloads it is often necessary. Also, note that these connections do not encrypt traffic by default—the dedicated link is private, but you should still use IPsec VPN or application-level encryption if you need it. Finally, setup times can be weeks because they involve physical cabling and provider coordination; plan ahead.

Alternatives to Dedicated Connections

If a dedicated connection is not feasible, both clouds offer alternatives:

• Site-to-Site VPN—Uses the public internet but with IPsec encryption. Cheaper and faster to set up, but with variable latency and lower bandwidth.
• Cloud VPN (AWS) / VPN Gateway (Azure)—Managed VPN services that are easier to configure.
• SD-WAN—Some providers offer software-defined WAN that can use a mix of internet and private links.
• Colocation with cloud on-ramp—Place your equipment in a colocation facility that has direct connections to the cloud, avoiding long-haul cabling.

For many small to medium workloads, a VPN is sufficient. Dedicated connections are best for high-volume data transfer, latency-sensitive applications, or regulatory compliance that requires a private path.

Frequently Asked Questions

Can I use AWS Direct Connect to connect to Azure?

No. AWS Direct Connect only connects to AWS services. Azure ExpressRoute only connects to Azure. They are separate physical links to separate clouds.

Which is cheaper: Direct Connect or ExpressRoute?

It depends on bandwidth and volume. At low bandwidth (50 Mbps), Azure ExpressRoute can be cheaper because AWS does not offer a 50 Mbps port. At higher bandwidth, pricing is similar. You must compare port fees and data transfer rates for your specific usage.

Do I need a dedicated connection for security?

Not necessarily. A dedicated connection is private, but it is not encrypted by default. A VPN over the internet can be just as secure if properly configured. The main benefits of dedicated connections are consistent performance and lower latency, not inherent security.

How long does it take to set up a dedicated connection?

Typically 2-4 weeks, because it involves physical cabling, colocation facility arrangements, and provider configuration. Some hosted connections can be provisioned faster, but still require coordination.

Can I have multiple Direct Connect or ExpressRoute connections?

Yes. Both services support multiple connections for redundancy. You can set up active/active or active/passive configurations. This is recommended for production workloads to avoid a single point of failure.

What is the difference between public and private peering?

Private peering gives you access to your VPC/VNet private IP space. Public peering (or Microsoft peering) gives you access to public cloud services (like S3 or Office 365) over the private link. You can have both on the same connection.

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