Virtual private clouds (VPCs) are virtualized cloud environments hosted on public cloud infrastructure. We use VPCs to create self-contained cloud environments with robust security protection. If you need to guard sensitive data or segment cloud assets, VPC solutions could be the best option.

A VPC also has financial benefits. When we compare virtual private cloud vs. private cloud solutions, virtualized hosting almost always cuts costs (and often improves performance).

If you choose to deploy a VPC, it’s vital to do so securely. VPCs are always vulnerable without the correct access controls and other security measures. This article will explore VPC security in more depth, including VPC security best practices to lock down your cloud-hosted assets.

Importance of securing VPC

VPC security matters because cloud security failures have dire consequences. Cloud attacks are also increasingly common. According to IBM’s Cost of a Data Breach Report 2024, 82% of breaches involved cloud-stored data.

In the same year, companies admit losing over 1 billion customer records to data thieves. One of the largest attacks targeted cloud data hosting company Snowflake, leaking records from AT&T, Ticketmaster, and even banking giant Santander.

Not all cloud deployments are equal. Comparisons between private cloud and public cloud solutions show that private cloud deployments protect data more efficiently. And virtual private clouds can be even more robust. Even so, unsecured cloud data is always at risk.

Despite these risks, confusion remains about who handles VPC security. Many companies assume their cloud vendor handles all security, so they set up their cloud service and forget about it. This is a mistake. Cloud security is a shared responsibility.

Vendors secure underlying infrastructure, including barriers between VPC instances. Users must secure access to cloud-hosted assets, including VPCs. Without robust controls, outsiders can breach VPCs and easily access data.

VPC best practices for security

Securing every VPC is critically important. There is no room for complacency, whether you handle protected health information or financial records. Fortunately, you can cut data breach risks by applying VPC security fundamentals.

What is VPC security all about? The list below includes security best practices to guide your virtual cloud deployment.

1. Configure your VPC securely

VPC security begins with configuration settings, including network segmentation, route tables, and network access control lists (NACLs).

VPC architecture enables basic segmentation via classless inter-domain routing (CIDR) blocks and subnets. CIDR blocks specify the number and range of allowable IP addresses on each VPC. Subnets are logically connected groups of IP addresses within the VPC and can be public or private.

A public subnet retains direct internet connectivity, creating an access risk if the subnet relates to sensitive resources. A private subnet lets you separate sensitive resources from other VPC assets and the public internet. This is a more secure VPC design solution.

VPC configuration should also consider the role of route tables and access control lists. These tools filter access requests and complement each other in VPC architecture.

Route tables record IP addresses linked to private subnets. They route traffic to connected assets, preventing general access to other resources.

Network access control lists (ACLs) define which users can enter a VPC subnet. When creating a VPC, check the default ACL settings. Most platforms allow all inbound and outbound traffic. Custom ACLs let you approve legitimate users, adding an extra layer of network security.

Finally, security groups logically group users and VPC assets. They also tend to have default settings that you can customize as needed. Check port, protocol, and IP addresses, and modify default security group configurations to suit your needs.

2. Securing access

Securing access is probably the most important VPC security best practice. Identity and Access Management (IAM) for VPCs includes internal and external controls. Both are critical in VPC security.

Internal controls define how users act inside the VPC perimeter. Platforms like Amazon Web Services use security groups to assign permissions for all users. Following the principle of least privilege (PoLP), permissions should enable access to essential resources while blocking access to everything else.

Access controls must also filter traffic originating outside the VPC.

NordLayer can help you manage external VPC access by network users. Our tools allow VPC users to implement flexible, lightweight, yet powerful controls for all users. VPN coverage links to VPC private gateways, concealing endpoints from external actors.

Remote workers can connect securely via our site-to-site VPN that encrypts VPC connections. Device posture management approves only compliant user devices, while multi-factor authentication guards against common credential theft attacks.

Secure API access is also vital. Services like AWS VPC Link create secure gateways for API calls. Avoid exposed VPC endpoints at all costs, as API exploits are a common route into cloud environments.

3. Monitor traffic on your VPC

In most cases, cloud service providers offer built-in security monitoring tools as part of the package. Reliable VPC traffic monitoring tracks security threats, unexplained behavior, and possible performance issues. VPC flow logs allow you to achieve these goals.

Flow logs record IP traffic within VPC perimeters. You can link them to specific security groups and track metrics like refused connection requests. With high-quality tracking data, you can detect intrusions rapidly and take action to protect critical data.

When this type of monitoring is not provided by default, clients can turn to third-party providers for more support.

VPC flow logs also help you diagnose security group configuration issues. Flow data helps detect excessively restrictive group identities that block vital traffic.

VPC users should also take advantage of monitoring integrations where possible. CloudTrail and CloudWatch are, for example, specific AWS services that provide logging and monitoring, respectively, within AWS environments.

• CloudWatch makes flow logs even more powerful, offering real-time alerts and data insights. Use it to create customized security rules for resources and monitor performance at a granular level.
• CloudTrail generates activity logs across the VPC. This makes it vital for accurate audits and tracing of malicious user requests.

4. Use secure VPC peering

A VPC peer link enables you to connect many VPCs for data transfers, load balancing, or to ensure optimal performance. Peering establishes a direct VPC peer link via private IPv4 or IPv6 addresses. This boosts security as a VPC peer link does not rely on the public internet to connect resources. Data flows stay within secure VPC boundaries.

Use peering to connect applications or to create secure links with other VPCs (for instance, systems managed by third-party suppliers).

When peering VPCs, check that route tables comply with your security policies. Limit routing to private subnets, instead of allowing direct connections between the CIDR blocks of VPC peers.

5. Encrypt data within the VPC

Encryption should protect data at rest within VPCs and data in transit between VPCs or across the network perimeter. VPC platforms like IBM or Amazon AWS provide native encryption for at-rest data. Users can manage encryption keys, deciding who can decrypt data and who is denied access.

VPC platforms generally do not encrypt traffic entering or leaving the VPC. This is the user’s responsibility, and there are a couple of options.

Firstly, AWS offers Direct Connect. This creates secure direct connections to AWS private gateways. Direct connections do not use the public internet. They tend to have low latency, ensuring high speeds and reliability.

Cloud and site-to-site VPNs could be better solutions. This can cause confusion, as users sometimes incorrectly oppose VPC vs. VPN technology. VPNs create encrypted tunnels for inbound and outbound data. They complement VPCs by securing connections over the public internet.

For example, NordLayer’s business VPN creates secure connections to VPCs over the public internet. This suits remote workers, providing flexibility and secure connectivity.

Always-on VPN functionality also encrypts every connection to the VPC. There are no loose ends. Users share the same encrypted tunnel, no matter where they log on.

6. Optimize cost and performance

Performance and cost optimization assist security by limiting the number of exposed endpoints and allowing only essential network traffic.

Here are some suggestions to keep the cost of VPC deployments down:

• Plan the size and number of VPCs. Leave some room for growth, but don’t buy more capacity than you reasonably need. Most solutions enable scaling as your operations expand, and excess capacity can be costly.
• Don’t add extra VPCs if VPC sharing works. Sharing works well when you need to segment resources at an account level. New VPCs should logically segment your business resources. You don’t need a VPC for each team.
• Minimize the need for NAT gateways. VPC hosts charge for additional gateways, and every extra endpoint raises data breach risks. Centralized private gateways are more secure and probably more cost-effective. Low-risk assets can also sit behind public gateways – which incur very low or zero fees.
• Manage the use of IP addresses in your VPC. Elastic IPs and standard IP addresses incur extra costs. Ensure you utilize all assigned IP addresses. This doesn’t just cut costs. It also limits the scope for external cyber-attacks.
• Business VPNs also reduce overall security costs. Amazon charges a fee for VPN coverage or Direct Connect. You can achieve comparable security via NordLayer’s VPN (which covers other network assets as well).

Optimizing traffic is just as important, allowing you to monitor data transfers and user activity on each VPC (and cutting costs).

• Use IP management tools to keep tabs on assigned and unused addresses.
• Keep low-risk workload components within the same Availability Zone. This cuts the need for expensive data transfers.
• Use multiple Availability Zones to host critical assets. Redundancy hedges against AZ outages, keeping resources available at all times.
• Take advantage of flow logs to detect bottlenecks or routing issues.

Ensure secure cloud access with NordLayer

Whatever deployment type you choose, NordLayer can help secure access to VPC environments with features like Site-to-Site VPN. Employees can connect securely to VPC through Virtual Private Gateways, whether working from the office, home, or other remote locations. The connection is encrypted, and users’ personal IP addresses stay masked for added privacy.

Additional security features include multi-factor authentication (MFA), Device Posture Security to block unauthorized devices, and Cloud Firewall to create network access rules. These tools ensure that only authorized users and devices can reach your VPC without requiring Direct Connect or AWS VPN.

To find out more, check out NordLayer’s pricing page or get in touch with our Sales Team to discuss VPC solutions.

Alternatively, why not sign up with NordLayer as an MSP partner? Our partner program generates consistent revenues for members. As a cybersecurity partner, you will also benefit from NordLayer’s security expertise. Earn revenue and improve your VPC security posture by signing up today.