Why is there such a huge price difference between the Basic VPN gateway and the higher tiers?

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Asked By CuriousGecko92 On

I recently set up an Azure PostgreSQL flexible server for a client, and they initially didn't need external access, so I set it up on a private network with VNET. After handing it over, they changed their minds and wanted access from their laptops using Visual Studio. I offered to recreate it with public networking and IP restrictions, or implement a virtual network gateway for VPN access. They chose the VPN option since their developers work remotely and have dynamically changing public IPs.

While creating the virtual network gateway, I noticed a significant pricing difference: the Basic gateway is priced at £19.85 per month, but the next tier, VpnGw1, jumps to £104.74, which is over five times more! For just a handful of developers needing minimal bandwidth, this jump feels excessive. I've read that the Basic gateway is on an older tier that's being phased out, and there's no upgrade path available. It seems like we're forced to pay this high price for increased bandwidth and connections that we don't actually need. Am I missing any other options here?

5 Answers

Answered By TechSavvySam On

Unfortunately, there really aren't built-in alternatives besides sticking with the Basic gateway. However, you could set up your own solution using tools like Wireguard, Tailscale, ZeroTier, or Cloudflare on a VM in your VNET, which can help save costs. That's the route we've taken for the same reasons you're facing.

Answered By VMMaster42 On

We've hit the same snag with having to upgrade due to the Basic IP deprecation. If your needs are minimal, consider setting up an Azure VM as a VPN concentrator instead.

Answered By DevGuru87 On

Exactly! The pricing jump occurs because the Basic gateway operates on an older tier that Microsoft is retiring. The VpnGw tiers utilize newer hardware with better SLAs, meaning you're pushed to pricier options even when you don't need all that extra bandwidth.

Answered By CloudNinja On

You might want to check out using Entra Private Access for your setup. It could fit your needs better and potentially save you some money!

Answered By CostConsciousDev On

I feel your pain! The jump to the next tier is wild. Just so you know, Microsoft might eventually lower those prices once they release newer VPN gateway SKUs, but it's still a tough spot right now.

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