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AWS VPC (Virtual Private Cloud)

What is VPS?

A VPC (Virtual Private Cloud) is a logically isolated network in AWS where you can launch and manage your resources (like EC2 instances, databases etc.).

VPC

  • VPC is a virtual network or datacenter inside AWS for one client
  • It is a logical isolated from other cirtual network in the AWS Cloud
  • A VPC is confined to an AWS region and does not extend between regions

Think of it as your private data center inside AWS, where we can control:

  • IP address range
  • Subnets
  • Routing
  • Security

Basic & Important Information About VPC

  • Each VPC is region specific
  • We can define a CIDR block(IP Range e.g. 10.0.0.0/16)
  • By default, AWS creates a default VPC in every region
  • We can create fully customizable networking environment
  • Supports both IPv4 and IPv6
  • In one region we can create maximum 5 VPCs and under one VPC can create 200 Subnets
  • We can allocate maximum 5 elastic IPs

Components of VPC

A VPC consists of several building blocks

  • Subnets
  • Route Table
  • Internet Gateway(IGW)
  • NAT Gateway
  • Network ACL (NACL)
  • Elastic IPs
  • VPC Peering

Types of VPC

  1. Default VPC

    • Automatically created by AWS
    • Ready to use
    • Public subnets included
    • Has an IGW (Internet Gateway) by default
  2. Custom VPC

    • Created by the AWS account owner
    • Full control over configuration
    • User needs to assign the CIDR
    • Does not have the IGW by default

What is a Subnet?

A Subnet is a smaller network inside a VPC. It divides our VPC into multiple sections for better:

  • Organization
  • Security
  • Availability

Example

VPC: 10.0.0.0/16 Subnet: 10.0.1.0/24

The allowed CIDR block size is between /16 to /28. The first four and the last IP address in a subnet are reserved and cannot be used

Types of Subnet

  1. Types of Subnet

    • Has the access to the internet
    • Connected via IGW (Internet Gateway)
    • Use for system like web servers, load balancers etc.
  2. Private Subnet

    • No direct internet access
    • Does not connected with the IGW by default
    • Used for databases, backend services etc.

Implied Router & Route Table

Implied Router

This is a logical router that connects different Availability Zones within a VPC. It works as the central routing system and also connects the VPC to the Internet Gateway (IGW).

  • Automatically created by AWS
  • Connects all subnets within a VPC
  • No manual configuration required

Route Table

A route table in a VPC (Virtual Private Cloud) in Amazon Web Services is a set of rules that control how network traffic moves inside your VPC. A route table is a collection of rules that directs network traffic between subnets, the internet and other resources in a VPC.

In simple terms, it decides where your traffic goes.

  • Defines how traffic flows in our VPC
  • Contains rules
  • Each subnet must be associated with only one route table at any given time
  • We can associate multiple subnets with the same route table

Internet Gateway (IGW)

An Internet Gateway (IGW) in a VPC in AWS is a component that allows your VPC to connect to the internet. It acts like a bridge between your VPC and the internet.

  • Enables communication between VPC and the internet
  • Attached to a VPC by default
  • Required for public subnets
  • It performs NAT between our private and public IPv4 address
  • It supports both IPv4 and IPv6

NAT Gateway

A NAT Gateway in a VPC in AWS allows private resources to access the internet without exposing them directly.

  • Allows private subnet resources to access the internet
  • Prevents inbound connections from the internet
  • We must also specify an Elastic IP address to associate with NAT Gateway when we create it
Example

Private EC2 --> Download Updates --> via NAT Gateway

Security Groups

A Security Group in AWS is a virtual firewall that controls traffic for your resources (like EC2 instances). It decides what traffic is allowed in and out of our instance.

  • Acts as a virtual firewall for instances
  • Works at instance level
  • Only allows rules (no deny rules, everything else is blocked by default)
  • Stateful (remembers connections)

Inbound rules

These control incoming traffic to our resource (like an EC2 instance). They decide who can access our server and on which port.

Example

  • Allow port 80 → users can open our website
  • Allow port 22 → we can SSH into our server

Outbound rules

These control outgoing traffic from our resource. They decide where our server can send data.

Example

  • Allow all traffic → server can access internet (APIs, updates)
  • Restrict traffic → server can only connect to specific services

In short we can say that:

  • Inbound = incoming traffic
  • Outbound = outgoing traffic

Network ACL (NACL)

A Network ACL (NACL) in AWS is a security layer that controls traffic at the subnet level in a VPC.

  • It is a dunction that performs on the Implied router
  • Firewall at the subnet level
  • Supports Allow & Deny rules
  • Rules are checked in order (by rule number)
  • Highest number that we can use for a rule is 32766

Difference: Security Group vs NACL

Feature Security Group NACL
Level Instance level Subnet level
Type Stateful Stateless
Rules Allow only Allow & Deny
Evaluation All rules evaluated Rules processed in order

VPC Peering

VPC Peering in AWS is a way to connect two VPCs so they can communicate with each other privately. It creates a direct private connection between two VPCs using AWS network (no internet).

VPC Peering

Key points

  • Traffic stays secure and private
  • No need for Internet Gateway or NAT Gateway
  • Works across same or different regions

Use Cases

  • Multi-region architecture
  • Connecting services across VPCs

Transitive VPC Peering

Transitive VPC Peering refers to a situation where you might want traffic to flow through one VPC to reach another VPC via peering.

Key points in Transitive VPC Peering

  • AWS does NOT allow transitive peering
  • If VPC A is peered with VPC B and VPC B is peered with VPC C, A cannot reach C through B.
  • Each VPC must have a direct peering connection to communicate

Transitive VPC Peering

Conclusion

AWS VPC is the foundation of cloud networking. Understanding VPC helps us:

  • Design secure architectures
  • Control traffic flow
  • Build scalable applications

VPC gives us full control over our cloud network, just like a real-world data center but more flexible and scalable.

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