Your datacenter needs to talk to Azure. You can send that traffic through an encrypted tunnel over the public internet, or over a private circuit that never touches it. That single choice — shared road or private rail — decides cost, speed, and reliability.
Almost every organization moving to Azure keeps something on-premises, and those two worlds have to connect privately. Azure gives you two hybrid-connectivity options, and they take opposite routes to the same destination: VPN Gateway and ExpressRoute. Understanding them is really understanding one question — does your traffic ride the public internet, protected by encryption, or a dedicated line that bypasses it entirely?
VPN Gateway: an encrypted tunnel over the internet
Microsoft's description is exact: Azure VPN Gateway "can be used to send encrypted traffic between an Azure virtual network and on-premises locations over the public Internet." Your traffic still travels the ordinary internet, but inside an IPsec/IKE tunnel, so it is private even though the road is shared. It comes in a few shapes: site-to-site (your datacenter's VPN device to Azure), point-to-site (an individual remote worker to the VNet), and VNet-to-VNet. It is quick to stand up, needs no third party, and is inexpensive — the pragmatic default for dev/test and small-to-medium production links.
ExpressRoute: a private, dedicated circuit
ExpressRoute takes the other road entirely. It "lets you extend your on-premises networks into the Microsoft cloud over a private connection with the help of a connectivity provider." The defining fact: because ExpressRoute connections do not go over the public internet, they offer "more reliability, faster speeds, consistent latencies, and higher security than typical connections over the internet." You are not tunnelling through shared roads; you have a private rail line into Microsoft's network, arranged through a connectivity provider. That extra reliability and consistency costs more and takes longer to provision — but for a bank, a hospital, or a latency-sensitive enterprise workload, it is the answer.
| VPN Gateway | ExpressRoute | |
|---|---|---|
| Path | Public internet (encrypted tunnel) | Private dedicated circuit |
| Reliability & latency | Best-effort internet | More reliable, consistent latency |
| Setup | Fast, self-service | Via a connectivity provider |
| Cost | Lower | Higher |
| Best for | Dev/test, small-medium prod, remote users | Enterprise, regulated, latency-sensitive |
A VPN tunnels privately through the public road. ExpressRoute gives you a private road of your own. Same destination, very different guarantees.
They are not mutually exclusive. The grown-up pattern often uses both: ExpressRoute as the primary private connection, with a site-to-site VPN as a secure failover path if the circuit goes down. Microsoft supports this coexistence directly. So the question is not always "which one" — sometimes it is "ExpressRoute with a VPN safety net."
How to choose
- Getting started, dev/test, or a small-to-medium workload where good-enough internet connectivity is fine? VPN Gateway. Fast, cheap, no provider to involve.
- Remote individual users needing into the VNet? A point-to-site VPN.
- Enterprise scale, strict reliability or latency needs, regulated industry, or heavy sustained data transfer? ExpressRoute — the private, consistent circuit is worth the cost and the lead time.
- Mission-critical link that cannot go dark? ExpressRoute primary, VPN failover.
The mistake is treating them as "cheap one vs expensive one." They are "shared road with a lock" versus "your own private line," and the right pick follows from how much reliability, consistency, and privacy the workload genuinely demands. Say "a site-to-site VPN for now, and ExpressRoute when we need consistent latency and an SLA on the connection — with the VPN kept as failover" and you are talking hybrid networking like an architect.
Questions people also ask
Is ExpressRoute more secure than VPN Gateway?
ExpressRoute keeps traffic off the public internet, which removes a whole class of exposure a VPN carries by design. But an ExpressRoute circuit is not encrypted by default. For data that must be encrypted in transit, add MACsec on the circuit or run an IPsec VPN over ExpressRoute. VPN Gateway is encrypted from the start, just over a shared path.
Can you use ExpressRoute and VPN Gateway together?
Yes, and Azure supports the coexistence directly. The common pattern runs ExpressRoute as the primary private circuit and a site-to-site VPN as the failover path, so if the circuit drops, traffic falls back to an encrypted tunnel over the internet instead of going dark.
How much does ExpressRoute cost compared to a VPN Gateway?
ExpressRoute costs more. Its tiers run from a metered Local option up to Standard around $300 a month for 1 Gbps, plus a Premium add-on, before you add the connectivity provider's own charges. A VPN Gateway has a much lower flat cost since it rides the internet you already pay for and needs no third-party provider.
What is the difference between ExpressRoute and a site-to-site VPN?
A site-to-site VPN connects your on-premises network to Azure through an encrypted tunnel over the public internet. ExpressRoute connects the same two networks through a private circuit arranged with a connectivity provider, bypassing the internet entirely for more consistent latency and reliability.
Which is faster, ExpressRoute or VPN Gateway?
ExpressRoute is faster and more consistent. Because it does not share the public internet's congestion and routing variability, it delivers predictable latency and higher throughput. A VPN Gateway's speed depends on internet conditions between your site and Azure, which vary and can degrade under load.
Further reading — the Microsoft docs
This is the comparison. Class 15 — Hybrid & DNS takes you hands-on: reason about connecting on-premises to Azure, wire consistent name resolution across the link, and see where a private circuit beats a tunnel.
This article was originally published on CAMPUX, a free Azure cloud-engineering bootcamp.
