What Are the Differences Between Cloud Connections and VPC Peering Connections?

Cloud connections differ from VPC peering connections in the following ways:

• Communication: A VPC peering connection can only connect two VPCs in the same region, but a cloud connect can connect multiple VPCs either in the same region or different regions.
• Network configuration: If you create a VPC peering connection, you need to manually configure routes. If you use a cloud connection, there is no need to configure routes.
• Bearer network: VPC peering connections use the data center network, but cloud connections rely on the Data Center Interconnect (DCI) backbone network.
• Billing: VPC peering connections are free. If you use a cloud connection to connect VPCs in the same region, no billing is involved. If you use a cloud connection to connect VPCs in different regions, you need to purchase bandwidth packages.

Table 1 compares these differences.