What is cross cloud interconnect? Key use cases

In today’s hyperconnected ecosystem, businesses no longer rely on a single cloud environment. Instead, they distribute workloads across multiple providers such as AWS, Azure, and Google Cloud Platform (GCP) to avoid vendor lock-in and leverage the unique strengths of each platform. However, as data flows between these disparate clouds, enterprises often encounter a “cloud cost trap” and performance challenges. Cross-cloud interconnect is the architectural solution designed to address these issues, providing a secure, high-speed, and cost-effective pathway for data moving between different cloud providers.

What is cross cloud interconnect in networking?

In technical terms, cross cloud interconnect refers to direct, private connectivity established between two or more different cloud service providers (CSPs). Unlike traditional approaches that route data via the public internet which is often unpredictable and slow interconnect solutions create dedicated links that remain within a secure network fabric.

This is typically achieved using Software-Defined Cloud Interconnect (SDCI). SDCI applies automation and orchestration to extend an on-premises network directly into the cloud. It leverages Network Functions Virtualisation (NFV), a software-driven architecture that shifts essential networking functions from physical hardware to virtual machines, enabling these connections to be managed with exceptional agility.

Why businesses need cross cloud interconnect

Many organisations find that their “soaring” cloud journeys can quickly become “sore” due to several persistent challenges:

• Complexity and lack of visibility: Managing multiple virtual networks and routing configurations across clouds leads to fragmented visibility, making traffic difficult to track.

• The egress spiral: Data leaving a cloud provider often incurs high and variable egress charges. Without cross cloud interconnect, these costs can escalate rapidly.

• Unpredictable performance: Dependence on the public internet for inter-cloud communication introduces latency and inconsistent application performance.

• Operational sluggishness: Traditional network models involve long provisioning timelines, limiting an organisation’s ability to scale alongside its workloads.
  
  

Key use cases of cross cloud interconnect

Cross cloud interconnect is a practical necessity for several critical business scenarios:

• Inter-cloud data transfer: Secure and cost-efficient connectivity between AWS, Azure, and GCP for seamless data migration and synchronisation.

• Low-latency inter-cloud communication: Ensuring minimal delay for applications requiring real-time interaction across multiple cloud environments.

• Establishing a network hub: Acting as a central hub that aggregates network and security components through a unified network landing zone.

• Disaster recovery and compliance: Enabling resilient architectures that support 100% uptime and meet strict data sovereignty and regulatory requirements.

Benefits of using cross cloud interconnect

By replacing traditional internet-based links with dedicated interconnects, organisations can achieve measurable improvements:

• Significant cost optimisation: Intelligent architectures can reduce data egress costs by 25–40%.

• High performance: Dedicated Points of Presence (PoPs), often located less than 2ms from major cloud providers, deliver consistent application performance.

• Rapid agility: Platform-based provisioning allows cloud connections to be set up in under 10 clicks, with bandwidth and virtual network functions scaled in minutes.

• Reliability: Redundant configurations support a 100% uptime SLA, essential for mission-critical workloads.
  
  

Challenges and considerations in cross cloud interconnect

Despite its advantages, deploying cross cloud interconnect requires careful planning. Fragmented visibility can arise without a unified management platform, making it difficult to monitor routing and traffic flows.

Security is another key concern. Traditional VPNs are increasingly insufficient, prompting organisations to adopt Zero Trust Network Access (ZTNA) and SASE (Secure Access Service Edge) to secure inter-cloud connections. Finally, managing Total Cost of Ownership (TCO) is essential to ensure that the flexibility of the cloud does not result in unexpected financial overheads.

How cross cloud interconnect supports multi-cloud strategy

A true multi-cloud strategy is not simply about using multiple providers; it is about integrating them into a cohesive ecosystem. Cross cloud interconnect acts as the “genetic fibre” that binds these environments together.

It enables organisations to optimise data placement, ensuring data resides where it is most cost-effective or performant while remaining accessible across clouds. It also improves resilience by allowing traffic to be rerouted instantly if one provider experiences an outage. Ultimately, it supports digital excellence by delivering consistent, secure access to data every day.

Final thoughts on cross cloud interconnect

As enterprises advance their secure network transformation journeys, seamless and “breezy” inter-cloud connectivity becomes a key differentiator. Cross cloud interconnect is essential for escaping the egress spiral and ensuring cloud investments deliver the expected return on investment.

Tata Communications is at the forefront of this transformation. Its IZO™+ Multi Cloud Connect solution is purpose-built to address inter-cloud complexity, delivering a reliable, scalable, and simple experience as-a-service. Through the Tata Communications TCˣ platform, organisations can provision bandwidth and manage virtual network functions in minutes, supported by a tier-1 global fibre network. Recognised as a Leader in the 2025 Gartner® Magic Quadrant™ for Global WAN Services, Tata Communications provides the expertise and infrastructure from AWS Direct Connect to Azure ExpressRoute and GCP Interconnect to make multi-cloud strategies truly future-ready.

Ready to simplify and secure your inter-cloud connectivity? Discover how cross-cloud interconnect can optimise performance, reduce costs, and bring clarity to your multi-cloud strategy. Schedule A Conversation