VPC
Definition
A logically isolated network in the cloud where you define IP ranges, subnets, route tables, and security rules to control how your resources communicate.
Use Cases
- Zoom: Securely connecting cloud workloads across regions and controlling inbound/outbound traffic for internet-facing services — Built isolated virtual networks (VPCs) with segmented subnets, route tables, and security controls; used private connectivity patterns and layered security groups/network ACLs to limit exposure (Improved network isolation and security posture, clearer separation of environments, and more controlled traffic flows for production services)
- Netflix: Running large-scale microservices with strong network segmentation and controlled service-to-service communication — Uses AWS VPCs with multiple subnets across availability zones, routing policies, and security groups to isolate tiers and manage east-west and north-south traffic (Supports scalable, resilient service deployments with reduced blast radius through network segmentation)
- Capital One: Hosting regulated financial workloads with strict network boundaries and controlled access paths — Uses AWS VPC-based network segmentation, tightly managed security groups/NACLs, and private connectivity options to separate sensitive systems and restrict access (Stronger isolation for sensitive workloads and improved ability to meet security and compliance requirements)
Provider Equivalents
- AWS: Amazon Virtual Private Cloud (Amazon VPC)
- Azure: Azure Virtual Network (VNet)
- GCP: Google Virtual Private Cloud (VPC)
- OCI: Oracle Cloud Infrastructure Virtual Cloud Network (VCN)
Frequently Asked Questions
- What's the difference between a Virtual Cloud Network (VCN) and a subnet?
- A VCN is the overall private network boundary in OCI (your isolated cloud network with its own IP address range). A subnet is a smaller slice of that VCN—used to group resources (like compute instances) into a specific IP range and apply routing and security controls at a more granular level.
- When should I use a Virtual Cloud Network (VCN)?
- Use a VCN when you need private, controllable networking for cloud resources—such as running applications that require segmented tiers (web/app/database), private IP addressing, custom routing, or strict security rules. It’s especially useful for production workloads, regulated data, hybrid connectivity to on-premises networks, and any scenario where you don’t want resources directly exposed to the public internet.
- How much does a Virtual Cloud Network (VCN) cost in OCI?
- Creating and using a VCN itself is generally not billed as a standalone resource, but you pay for related networking services and traffic. Common cost drivers include NAT Gateway, Service Gateway usage patterns, Load Balancers, FastConnect, VPN, public IPv4 addresses (if applicable), and data egress to the internet or between regions. Always verify current OCI pricing for the specific components you attach to the VCN.
Category: networking
Difficulty: intermediate
Related Terms
See Also