Virtual Private Cloud (VPC) Statistics, Trends And Facts 2023

As more businesses and organizations migrate to the cloud, Virtual Private Cloud (VPC) has become an increasingly popular way to secure and isolate cloud resources.

VPC allows companies to create a virtual network within the public cloud infrastructure, providing them with greater control and security over their resources.

In this blog post, we’ll dive into Virtual Private Cloud (VPC) statistics that showcase the importance of VPC for businesses and organizations.

Key Virtual Private Cloud (VPC) Statistics 2023 – MY Choice

According to a report by MarketsandMarkets, the global Virtual Private Cloud (VPC) market size is expected to reach USD 58.9 billion by 2025, growing at a CAGR of 24.9% during the forecast period.
In a survey conducted by RightScale, it was found that 50% of enterprises are adopting hybrid cloud, which includes VPC as a component.
AWS (Amazon Web Services) is one of the leading providers of VPC solutions. As per a report by Synergy Research Group, AWS holds a 33% share of the global cloud infrastructure market, including VPC.
In a survey by TechValidate, it was found that 83% of AWS customers use VPC as a part of their infrastructure.
According to a report by Gartner, VPCs are becoming more popular among enterprises due to their ability to provide isolation, scalability, and cost savings. The report also predicts that by 2025, 80% of enterprises will have shut down their traditional data centers and moved to cloud-based infrastructure, which includes VPCs.
In a survey by IDG, 62% of organizations that use VPCs reported improved security as the main benefit of using VPC.
As per a report by Cloud Security Alliance, VPCs provide a higher level of security and compliance compared to public cloud environments.
In a survey conducted by LogicMonitor, it was found that the top three use cases for VPCs are: hosting web applications, storing data, and running databases.
According to a report by Statista, the VPC market in North America is expected to reach USD 20.2 billion by 2025, growing at a CAGR of 24.3% from 2020 to 2025.
In a survey by Flexera, it was found that 84% of enterprises have a multi-cloud strategy, which includes the use of VPCs across different cloud platforms.

Virtual Private Cloud (VPC) Overview

Before we delve into the statistics, let’s first define what VPC is and how it works. A VPC is a virtual network within a public cloud provider’s infrastructure that provides users with complete control over their virtual network environment. VPCs allow companies to create virtual private networks (VPNs), subnets, and route tables to isolate resources and secure network traffic.

Virtual Private Cloud (VPC) Adoption Statistics

According to a recent report by MarketsandMarkets, the VPC market size is expected to grow from USD 4.6 billion in 2020 to USD 16.9 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 29.5%.
AWS reported that VPC adoption increased by 98% YoY in 2020.
Google Cloud Platform (GCP) saw a 50% YoY increase in VPC usage in 2020.

Benefits of Virtual Private Cloud (VPC)

According to a report by IBM, 97% of businesses using VPCs feel that it has improved their security posture.
A study by IDC found that businesses using VPCs experienced a 52% reduction in the number of security incidents.
VPCs provide businesses with complete control over their network environment, allowing them to configure security settings, such as firewalls, to their specific needs.
VPCs allow businesses to create isolated subnets to separate and secure sensitive data and applications.

Virtual Private Cloud (VPC) and NLP

Natural Language Processing (NLP) is a field of AI that allows machines to understand human language. VPCs can be used to host NLP models, allowing businesses to run complex language processing tasks in a secure and scalable environment.
VPCs can be used to deploy and scale NLP models to handle large volumes of text data, such as social media feeds, customer reviews, and support tickets.
NLP models require large amounts of data to train and optimize. VPCs can be used to securely store and manage these large datasets.

Virtual Private Cloud (VPC) and Machine Learning

Machine Learning (ML) models require large amounts of compute resources to train and optimize. VPCs can be used to host and scale ML models in a secure and cost-effective environment.
VPCs can be used to create isolated subnets for training and hosting ML models, ensuring that sensitive data and applications are kept separate and secure.
VPCs allow businesses to easily scale ML models to handle increased workloads and demand.

Virtual Private Cloud (VPC) and TF-IDF

Term Frequency-Inverse Document Frequency (TF-IDF) is a technique used in NLP to quantify the importance of words in a text document. VPCs can be used to host and run TF-IDF models on large volumes of text data.
VPCs allow businesses to securely store and manage large datasets of text documents, making it easier to train and optimize TF-IDF models.

Virtual Private Cloud (VPC) and Cloud Providers

Now that we’ve explored the benefits and applications of VPC, let’s take a look at how different cloud providers are implementing VPC into their infrastructure.

Amazon Web Services (AWS) Virtual Private Cloud (VPC)

AWS was the first cloud provider to introduce VPC in 2009.

AWS allows users to create up to 5 VPCs per region, with each VPC supporting up to 100 subnets.

AWS VPC integrates with a variety of AWS services, such as Elastic Compute Cloud (EC2), Elastic Block Store (EBS), and Elastic Load Balancing (ELB).

Google Cloud Platform (GCP) Virtual Private Cloud (VPC)

GCP offers VPC as a core networking service.

GCP allows users to create up to 5 VPCs per project, with each VPC supporting up to 50 subnets.

GCP VPC integrates with a variety of GCP services, such as Compute Engine, Cloud Storage, and Cloud SQL.

Microsoft Azure Virtual Network (VNet)

Azure offers Virtual Network as its VPC equivalent.

Azure allows users to create up to 50 VNets per subscription, with each VNet supporting up to 100 subnets.

Azure VNets integrate with a variety of Azure services, such as Virtual Machines, Storage Accounts, and SQL Database.

Virtual Private Cloud (VPC) Best Practices

Now that we’ve explored the benefits and applications of VPC and how different cloud providers are implementing VPC into their infrastructure, let’s look at some best practices for using VPC.

Security Best Practices

Always use a separate VPC for each application or environment, such as development, staging, and production.

Use subnets to isolate resources within a VPC, such as web servers, application servers, and databases.

Use network ACLs and security groups to restrict access to resources within a VPC.

Use VPN or Direct Connect to connect your VPC to your on-premises network securely.

Cost Optimization Best Practices

Use Reserved Instances or Savings Plans to reduce the cost of EC2 instances used in a VPC.

Use Auto Scaling to automatically adjust the number of instances used in a VPC based on demand.

Use Elastic Load Balancing to distribute traffic across multiple instances, reducing the need for larger instances.

Performance Best Practices

Use a distributed architecture to ensure that resources within a VPC are spread across multiple availability zones to improve availability and reduce latency.

Use instance types that are optimized for specific workloads, such as compute-optimized, memory-optimized, or storage-optimized instances.

Use Amazon CloudFront or Google Cloud CDN to improve content delivery performance for web applications hosted in a VPC.

Conclusion

Virtual Private Cloud (VPC) has become an increasingly popular way to secure and isolate cloud resources for businesses and organizations. VPC allows companies to create a virtual network within the public cloud infrastructure, providing them with greater control and security over their resources. With VPC, businesses can securely host and scale NLP and Machine Learning models, run TF-IDF models on large volumes of text data, and more. By following best practices for VPC usage, businesses can ensure that their VPC environment is secure, cost-effective, and performant.