Azure VPN Gateway: Complete UK Guide to Setup, Pricing & Alternatives
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Azure VPN Gateway is a key service from Microsoft Azure for creating secure VPN connections between your on-premises network and Azure Virtual Networks (VNets). Ideal for UK businesses adopting hybrid cloud strategies, it supports site-to-site (S2S) and point-to-site (P2S) VPNs, ensuring encrypted data transfer. This guide covers everything from basics to setup, pricing, and alternatives.
What is Azure VPN Gateway?
Azure VPN Gateway connects your local networks or devices to Azure via IPsec/IKE VPN tunnels. It’s a virtual network gateway service deployed in Azure regions, including UK South and UK West data centres for low-latency access.
Key features include:
- High availability: Active-active configurations for redundancy.
- Scalability: Up to 100 Gbps throughput on premium tiers.
- BGP support: Dynamic routing for complex setups.
- Compliance: Meets GDPR and UK data protection standards when configured correctly.
For UK users, proximity to local data centres minimises latency, making it suitable for finance, healthcare, and e-commerce sectors.
Types of Azure VPN Gateways
Azure offers two main types:
- Policy-based VPN Gateway: Uses a pre-shared key and static policies. Simpler but less flexible.
- Route-based VPN Gateway (recommended): Supports dynamic routing via BGP, VNet-to-VNet, and ExpressRoute coexistence. All modern setups use this.
Gateway SKUs range from Basic (100 Mbps) to Ultra Performance (100 Gbps), balancing cost and performance.
How to Set Up Azure VPN Gateway
Setting up requires an Azure subscription. Here’s a step-by-step guide:
- Create a Virtual Network: In Azure Portal, go to Virtual networks > Create. Select UK South region.
- Deploy the Gateway: Navigate to VPN Gateways > Create. Choose VNet, route-based, VpnGw1 SKU, and generate public IP.
- Configure Local Network Gateway: Add your on-premises details (public IP, address spaces).
- Create Connection: Link gateway to local network gateway with shared key.
- On-Premises Setup: Configure your firewall/router (e.g., Cisco, Fortinet) with matching IPsec policies.
- Point-to-Site (Optional): For remote users, upload certificates and generate VPN client.
Deployment takes 45 minutes. Test connectivity with Azure Network Watcher.
Azure VPN Gateway Pricing
Pricing is per gateway hour plus data transfer:
- VpnGw1: £0.038/hour (~£28/month) + £0.045/GB outbound.
- VpnGw2: £0.114/hour (~£83/month).
- Higher SKUs: Up to £4.50/hour for VpnGw5.
UK pricing aligns with global rates; no VAT shown (add 20% for UK). Use Azure Pricing Calculator for estimates. Reserve instances save up to 60%.
Pros and Cons of Azure VPN Gateway
Pros:
- Seamless Azure integration.
- Global scale with UK regions.
- Built-in monitoring via Azure Monitor.
Cons:
- Higher costs for always-on gateways.
- Complex for non-Azure users.
- Limited to IPsec (no OpenVPN native).
Azure VPN Gateway vs Traditional VPNs
Unlike consumer VPNs, Azure focuses on enterprise hybrid connectivity. Traditional VPNs (e.g., from FreeVPNDownload.co.uk/compare) excel in remote access but lack Azure-native scaling.
| Feature | Azure VPN Gateway | Traditional VPN |
|---|---|---|
| Use Case | Hybrid Cloud | Remote Workers |
| Cost | Subscription-based | Per-user/month |
| Throughput | 1-100 Gbps | 100 Mbps-1 Gbps |
Best Alternatives for UK Businesses
If Azure doesn’t fit:
- AWS Site-to-Site VPN: Similar but AWS ecosystem.
- Commercial VPNs: Providers like NordVPN Teams or ExpressVPN for simpler P2S. Check our VPN quiz for personalised UK recommendations.
- Zero Trust Solutions: Azure AD + third-party SASE.
For UK compliance, prioritise providers with London servers and no-logs policies.
In summary, Azure VPN Gateway suits Azure-centric UK firms. For broader needs, explore VPN alternatives via our tools.