What Are the Key Components of a VPC (Virtual Private Cloud)?
By Pooja | 24th June 2025
A VPC or Virtual Private Cloud is a network environment launched inside a very tall cloud of services which are public, such as those provided by Amazon, GCP, or Azure. It provides for launching and managing resources such as VMs, databases, and applications in an environment that is secure, scalable, and flexible. In order to understand how a VPC works, one must understand the key components that form each with its function in networking, security, and connectivity.

The major components of a VPC are:
Subnets:
A subnet is a part of an IP address range in a VPC where resources can be placed. Subnets can be thought of as smaller networks within the greater VPC network.
Public Subnet: Any subnet with a route to an internet gateway. Resources that must have internet access, like web servers, will be placed there.
Private Subnet: Any subnet that has no direct route to the Internet. A suitable candidate would be any resource for a database or an internal service.
Subnets can be set up in multiple AZs to provide greater availability and fault tolerance. Splitting the network into public and private subnets is perhaps the most common way to secure an architecture and make it efficient.
Example:
This would mean hosting, say, frontend web apps in the public subnet, with the backend database residing in a private subnet for a lighter exposure to external attack.
Route Tables:
The set of rules in a route table (routes) defines the path to which network traffic should be directed.
Each subnet has to be associated with a given route table that defines:
- Which traffic is to be kept local
- Which traffic goes to the internet
- Which traffic is sent toward a VPN or peered VPC
Key Points:
- One subnet can only be associated with a single route table.
- One route table can be associated with many subnets.
- The main route table is created by default in every VPC.
Example:
For a public subnet, the route table may include:
0.0.0.0/0 -> Internet Gateway
Internet Gateway (IGW):
An Internet Gateway scales out and has backup parts – it lets resources in your VPC talk to the internet.
To let instances in a public subnet use the internet:
- The subnet’s route table needs to show the Internet Gateway (IGW).
- Instances must get public IPs or Elastic IPs.
- Security groups plus network ACLs must permit the proper traffic.
For example, let’s say that if a web server is public and sitting in a subnet, then it can access the Internet and serve the users. This will be the case if the VPC has an Internet gateway attached and the route table routes internet-bound traffic toward it.
NAT Gateway / NAT Instance:
Should there be private subnets and one wants their resources to have access to the Internet (for downloading patches or updates), then either a NAT Gateway or a NAT Instance would be used.
- NAT Gateway: It is a managed service that offers high availability.
- NAT Instance: It is a user-managed EC2 instance configured to perform NAT.
Hence, these provide Internet access outbound from the private subnets but deny any inbound traffic for security reasons.
Security Groups:
Security Groups work as virtual firewalls for your instances to control traffic entering or leaving.
- They are stateful, if inbound traffic is allowed, the return traffic is automatically allowed as well.
- If you like, then you may associate more than a security group to a particular instance.
- The rule is applied as to the source/destination IP addresses based on the protocol and the port number.
Example:
- Security group for a web server would:
- Allow inbound HTTP (port 80) and HTTPS (port 443).
- Allow all outbound traffic.
Network Access Control Lists (NACLs):
NACLs serve as an extra level of security at the subnet level. They control the traffic that comes in and exits the subnets.
- Stateless—rules must be declared independently for inbound and outbound traffic.
- It can be configured to allow or deny traffic (security groups allow only).
- It is great for enforcing broad network-level rules.
Use Case:
You might deny all traffic from a known malicious IP range using NACLs.
Elastic IP Addresses:
An Elastic IP (EIP) is a static public IPv4 address; you allocate the address to your AWS account and give it to an instance, NAT gateway, or network interface.
- It ensures that the public IP is retained through instance restart.
- It’s useful for services requiring static IP addresses, such as ones used in DNS records.
VPC Peering:
Virtual Private Cloud (VPC) Peering is the means to allow two VPCs to communicate with each other as if they were on the same network.
- It is illegal for a third party to intercede (A <-> B and B <-> C does not imply A <-> C).
- It can be set up either within the same region or also across regions.
- VPCs that are peered must not have overlapping CIDR blocks.
Use Case:
Link a development VPC to a production VPC with security.
Endpoints (Interface and Gateway):
VPC endpoints allow private communication with AWS services without ever using the internet.
- Interface Endpoints employ ENIs and mostly support other AWS services.
- Gateway Endpoints support S3 and DynamoDB.
This is one way of lending traffic greater security and reducing their exposure to threats from the internet.
DHCP Option Sets:
They define the way network settings like domain names and DNS servers are assigned to instances within the VPC.
You can customize:
- DNS server IPs
- Domain name
- NTP servers, etc.
By default, instances get their settings from AWS, but you can change this to enable integration with on-premise systems.
VPC Flow Logs:
Flow Logs track information on IP traffic going in and out of the network interfaces in your VPCs.
They assist in:
- Network troubleshooting
- Performance monitoring
- Security analysis
Logs can be sent to Amazon CloudWatch Logs or S3.
Why These Components Matter?
These components work together to give you full control over your cloud environment’s networking and security:
Component | Purpose |
Subnets | Isolate resources and organize the network layout |
Route Tables | Define how traffic flows in/ out of subnets |
IGW/ NAT | Enable internet access while managing security |
Security Groups | Protect resources at the instance level |
NACLs | Add broader subnet-level control |
Peering & Endpoints | Enable safe connectivity across services and VPCs |
Conclusion:
Knowing the vital aspects of a Virtual Private Cloud (VPC) forms the foundation of attributes that make cloud environments secure, trustworthy, and scalable. Subnets, route tables, security groups, and gateways are among these crucial components that govern communication and safeguard infrastructures.
When competent teams understand such relationships, proficient designs can be made that harden any form of application, from a simple one to an entire enterprise system. Essentially, a VPC, along with its components, defines any well-conceived cloud infrastruct
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