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  • FREE
    • Bandwidth for traffic FROM the Transit Gateway TO VPCs is free.
  • FREE to Cornell AWS Accounts
    • Every VPC connected to the Transit Gateway is charged $0.05/hr by AWS. These charges will appear in customer AWS account invoices, but the charges will be paid for by CIT since a Cost Center tag on the Transit Gateway attachment automatically will automatically direct those charges to a CIT KFS account. This charge accounts for about $36/mo.
  • CUSTOMER COST
    • Bandwidth charges for traffic FROM VPCs TO the Transit Gateway is $0.02/GB. This cost is born by the customer and the magnitude of the charge will be similar to the Direct Connect egress charges born by the customer in the v1 architecture.

Costs of Peering Versus Transit Gateway Use

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Info

Even though the 2023 Direct Connect architecture fully interconnects all VPCs using Direct Connect (i.e., attached to the Transit Gateway),

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establishing peering directly between VPCs

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When to Setup Peering

  • High-volume data transfer
  • Ultra-low latency data transfer – Traffic using peering connections makes exactly one hop. Traffic using a Transit Gateway makes about four hops.
  • When Security Groups in one VPC need to reference Security Groups in the peered VPC. – Transit Gateway connectivity does not support cross-VPC Security Group references.
  • When one of the VPCs is not connected to the Transit Gateway (and thus not using Direct Connect).
  • When both VPCs reside in AWS account(s) that you own, and your team has expertise the to setup peering.

When to Avoid Peering

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can cut costs because peering connections have no bandwidth charges. See Peering AWS VPCs that Use Direct Connect.