Connection Cost in Azure Virtual WAN
Understanding the cost structure of Virtual WAN connections helps you design cost‑effective, high‑performance network topologies. This page outlines the primary components that contribute to connection costs, explains billing metrics, and provides guidance on optimizing spend.
Cost Components
| Component | Description | Pricing Model | 
|---|---|---|
| Hub‑to‑Hub Transfer | Data transferred between hubs in the same Virtual WAN. | Per GB outbound traffic | 
| Branch‑to‑Hub Connection | Traffic between on‑premises sites (branch VPN) and the hub. | Per GB inbound/outbound traffic | 
| Site‑to‑Site (S2S) VPN | Standard IPsec VPN tunnels to the hub. | Fixed hourly charge per tunnel + data usage | 
| ExpressRoute to Hub | Private dedicated connectivity from an ExpressRoute circuit to a hub. | Metered data (per GB) or Unlimited (fixed fee) | 
| Hub‑to‑VNet Peering | Traffic between the hub and peered VNets. | Per GB VNet inbound/outbound traffic | 
| Data Processing (Security, Acceleration) | Optional services like Azure Firewall, Azure DDoS, and WAN Optimizer. | Service‑specific hourly rates | 
Billing Metrics
- Data Ingress/Egress: Measured in gigabytes (GB). Azure reports usage at the hub level.
- Hourly Charges: Applied to each active connection (VPN tunnel, ExpressRoute circuit, etc.).
- Tiered Discounts: Volume discounts apply after 10 TB per month for hub‑to‑hub traffic.
Cost‑Optimization Tips
- Consolidate hubs where possible to reduce hub‑to‑hub traffic.
- Enable traffic steering to route high‑volume workloads through ExpressRoute (metered) instead of VPN.
- Use Azure Cost Management alerts to monitor unexpected spikes.
- Evaluate unlimited data plans for ExpressRoute if your traffic regularly exceeds 5 TB/month.
- Leverage Azure Firewall Manager policies to avoid redundant security services.
Sample Pricing (USD, East US)
| Component | Rate | Notes | 
|---|---|---|
| Hub‑to‑Hub Transfer | $0.02/GB | Tiered after 10 TB | 
| Branch‑to‑Hub (VPN) | $0.008/GB | Includes 1 GB free per month per tunnel | 
| VPN Tunnel | $0.025/hr | Per active tunnel | 
| ExpressRoute (Metered) | $0.025/GB | Unlimited option available | 
| Hub‑to‑VNet Peering | $0.01/GB | Both inbound & outbound | 
| Azure Firewall | $1.25/hr | Plus data processing fee | 
| All rates are subject to change. Verify current pricing on the Azure Pricing Calculator. | ||