VPN vs VPC | How They Function and Where They're Used

Discover the differences between VPN and VPC, their benefits, use cases, and when to choose each for secure cloud-based networking and remote access.

Updated: 16 Feb, 25 by jean lou 13 Min

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When comparing VPC vs VPN, it's essential to understand how each creates private access to network resources. VPC and VPN are key to secure cloud access, but they work differently. A VPC is your own private space within the public cloud. A VPN is like a secure tunnel that lets you connect to that private space. This post explains the difference between them and how they work together to keep your cloud resources safe. Also, it highlights their differences and explains how they work together. Understanding VPCs and VPNs is crucial for any business moving to the cloud.

Feature

VPN (Virtual Private Network)

VPC (Virtual Private Cloud)

Definition

Encrypts internet traffic to secure online activities.

Creates an isolated virtual network within a public cloud.

Use Cases

  • Secure remote access
  • Bypass geo-restrictions
  • Encrypt data on public networks
  • Hosting secure applications
  • Creating private cloud environments
  • Controlling access to cloud resources

Connection Type

Connects devices or networks across different locations via the internet.

Internal cloud networking for secure communication between cloud resources.

Security Level

Encrypts data transmission to protect against external threats.

Provides isolation from public users with strict access controls.

Deployment & Scalability

Used for securing remote user connections; limited scalability.

Cloud-based and highly scalable for hosting applications and managing resources.

Control & Customization

Minimal control over network infrastructure; mainly secures traffic.

Offers full control over network settings, access, and configurations.

VPN stands for Virtual Private Network. It allows you to create a secure and protected connection when you connect to the internet. VPNs completely encrypt your internet traffic and hide your identity. This makes it difficult for others to track your information and steal it. A VPN establishes a point-to-point connection between your device and the global Internet, allowing a user to access another computer from their PC using tunneling protocols. In order to protect your corporate data and prevent information from being tracked in transit, traffic is often encrypted with network encryption protocols such as SSH or IPsec.

Key features of VPN

  • VPS encrypts your internet connection to protect your data from being tracked by ISPs or other third parties.
  • It hides your real IP address to maintain privacy and anonymity online.
  • It secures your data, even when using public Wi-Fi, by preventing hackers from stealing your personal information.
  • It allows you to bypass restrictions and access blocked websites securely.

VPN use cases

If you want to know what is a VPN used for, here are its use cases:

  • VPNs can be used to access blocked websites and enhance security during online activities.
  • VPNs can also change your geographical location to access unavailable content.
  • For trading, using a VPN to bypass the Iranian embargo may not be safe; a fixed IP or trading server is recommended for better security.
  • VPN can help employees to work remotely and access internal resources safely.

Challenges with VPN 

In addition to its benefits, VPN also carries risks. As we mentioned earlier, the information transmitted through a VPN is decrypted again after its structure and encryption have been changed. Here are other disadvantages of VPN:

  • VPN can significantly reduce download speed.
  • The greater the distance between VPN servers, the slower your internet speed will be.
  • Restrictions on using VPNs in some countries and lack of access
  • Higher quality but more expensive paid versions of VPNs compared to free versions
  • Direct traffic connection to the Internet in case of VPN disconnection
  • Server limitations in free VPNs and the possibility of disconnection

If you're looking for a reliable option, check out the Best VPN for PC for secure, fast connections.

A Virtual Private Cloud, known as VPC in the field of cloud technology, provides you with a private network in the cloud environment through which you can create a secure cloud infrastructure to host your applications and services, limiting access to other IPs by customizing your network. In other words, VPC is similar to modern private companies that separate different parts of sales, marketing, accounting, and management with glass partitions. Each part, while functioning independently, is connected to each other.

VPC is like renting a virtual house on the heart of a cloud island that provides all the facilities you need to live. A house whose key is in your hand, and other island residents do not have access to it unless you give them the key to the house yourself.

Key features of VPC

  • Security and privacy of users are protected: VPC creates a private, secure environment for users, similar to a shop in a commercial tower.
  • Complete control over consumed resources: VPC allows precise control over resources, network settings, access, and security. You only pay for what you consume; no cost for inactive resources.
  • Customizable according to needs: VPC allows you to adjust resources based on demand, especially during peak hours. Offers flexibility similar to customizing a house in a game.
  • Secure data transfer: VPC allows safe and secure data transfer between servers. Ensures data security without unauthorized access, offering a customizable and controllable environment.

VPC use cases

  • Set up secure and scalable websites and databases in a private, isolated cloud space (VPC).
  • Keep servers private and use a special gateway (NAT) for secure internet access, blocking direct connections.
  • Easily connect lots of services and resources across different private cloud spaces (VPCs) and accounts.
  • Keep data private and safe when moving it between servers in your private cloud space.
  • Give employees secure access to company resources from anywhere with remote desktops and applications.
  • Securely access cloud services using PrivateLink, improving security and scalability.
  • Connect your company's existing systems to the cloud securely.

Challenges with VPC

Here are the disadvantages of VPC:

  • Complex configuration and management: Setting up, managing, and monitoring VPN activity in a VPC is challenging for companies.
  • Higher costs: VPCs are more expensive than conventional cloud hosting and may even exceed the cost of a private cloud hosted on-premises.
  • Additional expenses: Creating a dedicated connection increases the total cost, especially if no optional features are purchased, each of which incurs extra charges.
  • Limited suitability for large enterprises: VPCs are more beneficial for small to medium-sized businesses, particularly those without budget constraints. Large companies often do not need VPC advantages, as they can maintain and update their own hardware and software.
  • Data security concerns: Despite being an isolated environment, VPCs store data outside a company's data centers, which may conflict with strict data protection policies.
  • Industry limitations: Organizations in financial and healthcare sectors, due to data sensitivity, may not be able to host certain applications and programs on a VPC.

Virtual Private Cloud and Virtual Private Network are two distinct concepts in the context of cloud networking. A VPN provides a secure connection to the public internet by creating an encrypted tunnel through which information is exchanged. In such a situation, the security of the connection to the public internet is as good as the security of the connection to a private network. You can deploy VPNaaS (VPN as a service) to create a secure site-to-site communication channel on your VPC, on-premises environment, or other locations. Using a VPN, you can connect subnets in multiple VPCs so that they act as if they were on a single network. For a secure browsing experience, check out the Best VPN for Chrome. Here is a detailed look at VPN vs VPC:

Definition

VPN is a way to create secure connections between networks, regardless of their physical location. Using a VPN, you can connect different networks together and encrypt the communications between them over the Internet.

VPC is a private cloud environment that enables you to create a dedicated virtual network in the public cloud. This feature allows you to keep your resources in a shared cloud platform separate from others.

Use cases

VPN is mostly used in the context of securely connecting networks using public networks. Using a VPN, you can establish secure connections between different networks without the need to create a physical private network.

VPC is Mostly used in the context of creating and managing a virtual private network within a public cloud. The above approach allows you to create and manage your networks and subnets within a shared cloud platform.

Connection type

VPN is mostly used to connect networks in different geographical locations. Using a VPN, you can establish a secure connection between two networks over the Internet. For those looking to configure their own secure connection, check out How To Setup a VPN.

On the other hand, VPC usually is used for internal communication within a public cloud. Using a VPC, you can create and manage your networks and resources within a public cloud.

Security Level

VPN Allows you to protect traffic sent and received on networks over the Internet by using encryption and security protocols. Connections established by VPN are carried out securely.

VPC can provide a high level of security by isolating networks and subnets, as well as using access policies and permissions, but to access the VPC from the outside, security solutions such as VPN may be required.

Deployment and Scalability

VPNs are primarily used to securely connect remote users to a corporate network, focusing on data security and privacy for individual user connections.

VPCs are scalable cloud environments designed for hosting services and applications, benefiting from the elastic scalability inherent in cloud computing.

Control and Customization

VPNs provide secure access but offer minimal control over the underlying network infrastructure.

VPCs offer significant control over the network configuration within the cloud environment, enabling detailed customization of virtual networking elements.

You may want to know VPN vs VPS

In short

VPC is mostly used in the context of creating and managing private networks within a public cloud, while VPN is mostly used to create secure connections between different networks located in different geographical locations. However, these two concepts can be used in combination to create secure communications within a VPC or between a VPC and external networks.

Choosing between a VPN vs VPC depends on your needs and organization. Here we explain in detail when to choose VPN and when to choose VPC:

When to Use a VPN

  • If you need secure remote access, use a VPN to enable employees to work from home or connect to company resources from different locations.
  • If you require data protection over public networks, a VPN ensures encrypted communication when accessing sensitive data over the internet.
  • If you need to connect multiple offices, a VPN can establish a secure link between different branches or business locations.
  • If you want secure access to cloud services, a VPN protects data when employees remotely access cloud applications.

When to Use a VPC

  • If you need to host secure applications, use a VPC to deploy applications in a controlled, isolated cloud environment.
  • If you are looking for a private cloud alternative, a VPC offers the security of a private cloud while leveraging the scalability of public cloud infrastructure.
  • If you require granular access control, a VPC allows you to define strict access policies using subnets, firewalls, and role-based permissions.
  • If you want data separation from public users, a VPC ensures that sensitive data is stored in a private cloud environment, reducing security risks.

Conclusion

In order to provide safe and effective resource access, VPC and VPN are essential parts of the cloud-based architecture. A VPN offers safe remote access to such resources, while a VPC creates a private network inside a public cloud. Key benefits of both technologies include improved security, privacy protection, remote connectivity, and circumvention of geo-restrictions. In conclusion, when it comes to VPN vs VPC, we can say that a VPC is the best option for creating a safe, separated cloud architecture with complete control over network configurations, whereas a VPN is best for secure remote access and data encryption.

A VPC creates a private network within a public cloud, whereas a VPN secures the data traffic between devices and networks over the Internet.

While a VPC can include a VPN to enable secure, encrypted connections to external networks, it doesn't rely on a VPN for its internal cloud operations.

Yes, a VPN can be integrated with a VPC to connect external networks to the private cloud environment securely.

No, a VPN is not necessary for a VPC's internal operations, but it can be used to provide secure external connections.

While VPNs offer internet traffic encryption, VPCs provide a more secure, isolated cloud environment for hosting applications and services.

Yes, a VPC can offer secure remote access, but typically, a VPN is used to connect remote users to the VPC securely.

VPN is better suited for secure remote access to networks, while VPC is more focused on securely hosting and managing resources in the cloud.

No, VPCs can be connected across regions using dedicated connections or VPC peering, though VPNs can also be used for secure connections if needed.