After reading through everyone’s experiences, here’s my synthesis on the ExpressRoute vs VPN decision for backup workloads:
Bandwidth and Performance Characteristics:
ExpressRoute provides dedicated, predictable bandwidth with consistent throughput. In production environments handling 15-20TB monthly, this translates to reliable 6-8 hour backup windows. VPN offers theoretical bandwidth (up to 1.25 Gbps on VpnGw3) but real-world performance typically achieves 60-70% of maximum due to IPsec overhead and internet path variability. The key difference: ExpressRoute delivers consistent performance while VPN is best-effort.
Cost Structure and TCO Analysis:
VPN appears cheaper initially ($300-400/month for gateway) but lacks bandwidth guarantees. ExpressRoute costs break down as: circuit fee ($500-3,000/month depending on bandwidth), ExpressRoute gateway ($200-600/month), and data egress ($0.025-0.087/GB). For 20TB monthly, total ExpressRoute cost runs $2,500-4,000/month versus $400-600 for VPN. However, factor in soft costs: missed backup windows, potential data loss from failed transfers, and staff time troubleshooting performance issues. Our 3-year TCO analysis showed ExpressRoute only 15-20% more expensive when including operational costs.
Hybrid Network Strategies:
The most sophisticated implementations use both technologies strategically. Common patterns:
- Control/Data Plane Split: VPN for management, monitoring, and small transfers; ExpressRoute for bulk data movement
- Active/Backup: ExpressRoute primary with VPN failover (requires careful BGP tuning)
- Tiered Approach: ExpressRoute for production backups, VPN for test/dev environments
Implementing hybrid requires BGP expertise for route manipulation, policy-based routing on-premises, and potentially Azure Route Server for complex topologies. Use BGP communities to control route advertisement and AS-path prepending for failover scenarios.
Decision Framework:
Choose VPN if: backup windows are flexible (12+ hours), monthly data volume < 10TB, budget is primary constraint, or you’re in testing phase.
Choose ExpressRoute if: strict backup SLAs, monthly volume > 15TB, low latency required for backup software (dedup, metadata), or you need predictable performance for compliance.
Recommendation for Your Scenario:
With 15-20TB monthly and 6-8 hour windows, you’re borderline. I’d start with VpnGw3 (1.25 Gbps) and monitor actual throughput for 30 days. If you consistently achieve > 900 Mbps and meet backup windows, VPN suffices. If you see degradation or window violations, the business case for ExpressRoute becomes clear. Many organizations start with VPN and migrate to ExpressRoute as data volumes grow - this staged approach reduces upfront investment while providing upgrade path.