Benefits of a Virtual Private Cloud (VPC) – Netmagic
1. The three most essential benefits of a
Virtual Private Cloud (VPC)
How many times have you heard service providers saying that they are a perfect fit for the cloud
business because they are already providing the network? What do they mean? How does your
business benefit? Is network a critical component of your application or is it just a redundant
item on the list? Let me answer these queries by explaining the three most important benefits of
Virtual Private Clouds.
Before we get down to explaining the benefits of a VPC, let me define what a VPC is in the first
place. VPCs are similar to public clouds yet somewhat different – they can be defined as a
private cloud infrastructure provided within a public cloud. The resources are owned and
operated by the cloud provider. However, unlike public clouds, that are Internet
reachable, Virtual Private Clouds are Intranet reachable. So they look and feel like a part of a
company’s MPLS-based internal Wide Area Network. Coming down to benefits, the three most
essential benefits of a VPC are:
2. Take a look at the figures below, do you spot the difference? Yes, in the figure on the left, the
traffic that is destined for the cloud is being sent via the company data center or is being looped
through the company data center. This leads to wastage of bandwidth, router, switch and
firewall capacity. Your company will end up paying twice for bandwidth. How? - By paying for
the primary WAN connection and then for the Internet. Not to mention network sizing – the
very basis of a cloud is access to on demand resources. In this case your network must always be
sized for peak traffic. How is that efficient?
The figure on the right hand side shows a Virtual Private Cloud set up. With the second set up,
the bandwidth required to reach the cloud will be billed for on-demand and users will be able to
take the shortest and a cost effective route to the application.
Forrester predicts the public cloud market will peak in 2014 and “then enter a period of significant
commoditization, price deterioration, and margin pressure.” While the public cloud market declines,
the VPC infrastructure services market will continue to grow, from US$2.54 billion in 2012 to
US$21.04 billion in 2020. This sustained growth will largely be attributed to the “enterprise-nature”
3. of VPC services, including higher levels of security, privacy, and control not offered by public cloud
solutions, and not easily commoditized.
Congestion in the Internet can disrupt or slow down your application traffic. Even if you have
sized your network for peak times, inbound congestion could hamper application performance
and make applications run slow. The point of congestion is shown in the above figure.
With Virtual Private Cloud, the cloud resources are routed through the corporate MPLS based
WAN. Thus, traffic with a high priority can be marked and delivered accordingly.
Traffic to and from the Virtual Private Cloud stays within the corporate firewall without crossing
the Internet. With routing policies companies can also specify which users are allowed to reach
the Cloud resources and which are not.
With public clouds, encryption technology will be required to help secure the transmission
across the Internet. Although encryption is generally secure it is still one more thing that needs
to be managed by Corporate IT and it needs to be configured correctly. Furthermore, corporate
IT will have no way to prevent users from attempting to access the Cloud resources.
A Word For Service Providers
The cloud service market is going to go through a sea change with significant market shifts in
the coming years; hence, the cloud computing service providers must look at expanding their
service offering through introduction of Virtual Private Clouds (VPC). They should look at
crafting their VPC offering to meet the following criterion:
Emphasize “enterprise-strength” services with comprehensive security capabilities
Appropriately differentiate service levels and value-added services that go above and
beyond basic compute capabilities
4. Accentuate the ability to provide true end-to-end cloud computing infrastructure and
networking services, all covered by service level agreements (SLAs) from a single service
provider (for example, covering not only cloud computing infrastructure availability, but
network availability as well)
Properly balance service prices between the desire to be competitive and the desire to
capture price premiums
Target the right customers and workloads
So, what is your take on the Virtual Private Cloud? Are you looking at a VPC for your
workloads? We could help you reach a decision, write to us at
About NTT Communications Corporation
NTT Communications provides consultancy, architecture, security and cloud services to
optimize the information and communications technology (ICT) environments of enterprises.
These offerings are backed by the company’s worldwide infrastructure, including the leading
global tier-1 IP network, the Arcstar Universal One™ VPN network reaching 196
countries/regions, and 140 secure data centers worldwide. NTT Communications’ solutions
leverage the global resources of NTT Group companies including Dimension Data, NTT
DOCOMO and NTT DATA.
www.ntt.com | Twitter@NTT Com | Facebook@NTT Com | LinkedIn@NTT Com
About Netmagic Solutions (An NTT Communications Company)
Netmagic, an NTT Communications company, is India’s leading Managed Hosting and Cloud
Service Provider, with 9 carrier-neutral, state-of-the-art data centers and serving more than
1500 enterprises globally. A pioneer in the Indian IT Infrastructure services space - it was the
first to launch services such as Cloud Computing, Managed Security, Disaster Recovery-as-a-
Service and Software-Defined Storage. Netmagic, also delivers Remote Infrastructure
Management services to NTT Communications’ customers across Americas, Europe and Asia-
Pacific region. Recipient of several industry accolades, Netmagic was recently chosen by Frost &
Sullivan for both Third Party Data Center Service Provider of the year and Infrastructure as a
Service Provider of the year at India ICT Awards 2015.
5. Netmagic is the first cloud service provider in India and in the world, to receive the CSA STAR
certification for Cloud Capability Maturity Model (CCM) version 3.0.1, an industry benchmark
for the specific security requirements of multi-tenant service providers. Besides this, Netmagic
is also empanelled as an IT Security Auditing Organization with CERT-In (Indian Computer
Emergency Response Team).
NTT Communications, world’s largest data center company, has over 140 data centers globally.
NTT Communications is a part of NTT Corporation, Japan – which is ranked 53rd on Fortune
Global 500 list (2014) with annual turnover of USD 112 Bn. With 240,000 professionals in 79
countries, NTT Corporation is the only global partner that supports clients with an integrated
perspective across applications, infrastructure and network.
www.netmagicsolutions.com | Twitter@Netmagic | Linkedin@Netmagic | YouTube@Ne