concept

VPN vs Dedicated Connection

also called Direct Connect, ExpressRoute

Two ways to link on-premises networks to cloud — an encrypted tunnel over the internet, or a private physical circuit.

Site-to-site VPN runs over the public internet with IPsec encryption. Cheap, provisioned in hours, and it inherits the internet's variable latency and throughput. Bandwidth is bounded by the tunnel, typically low single-digit Gbps, and multiple tunnels are needed for more.

Dedicated connection is a physical circuit into the provider. Consistent latency, high and predictable bandwidth, lower per-gigabyte data transfer charges — and it takes weeks to months to provision, costs considerably more, and is a single physical thing that can be cut.

The usual arrangement is both: a dedicated connection for normal traffic and a VPN as automatic backup, which is the standard resilient pattern.

The decision inputs are volume (dedicated pays for itself above a threshold through cheaper transfer), latency sensitivity, and whether variable internet performance is tolerable. And note that both need non-overlapping address ranges, which returns to CIDR planning.