Ever wondered how businesses seamlessly connect to powerful cloud services or remote networks? If you’ve explored options for scaling your operations or improving connectivity, you’ve likely come across the term “hosted connection”—but what does it really mean, and how does it work?

Understanding hosted connections is key to making smart decisions about your company’s network needs. This article breaks down what a hosted connection is, its benefits, and the steps to set one up, giving you practical tips to get started confidently.

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What is a Hosted Connection?

A hosted connection is a type of dedicated, private network link between your on-premises infrastructure and a cloud provider, such as AWS or Huawei Cloud. Unlike traditional public internet connections, a hosted connection allows you to access cloud services over a more secure and reliable path, regularly provisioned via a third-party provider’s infrastructure. This model is especially popular for businesses looking to enhance performance, reliability, and security for cloud applications.


Understanding Hosted Connections: How Do They Work?

Hosted connections bridge your local data center or office network directly to the cloud. Instead of routing your data through the public internet (which can be slow or insecure), traffic uses a private, high-capacity fiber link established by service providers. Here’s how it typically works:

  1. You request a hosted connection from a cloud partner or network provider
    Providers like Megaport, Equinix, or other official partners have physical infrastructure in their data centers that already connects to the cloud’s network (e.g., Amazon Web Services, Huawei Cloud).

  2. A logical link (virtual circuit) is provisioned for you
    This isn’t a dedicated fiber just for you, but a reserved bandwidth portion over shared infrastructure. For example, you might get a 1 Gbps or 10 Gbps private link.

  3. The provider manages the physical network
    Service providers handle the heavy lifting: cabling, network equipment, interconnections, and ongoing maintenance.

  4. You configure the logical connection in your cloud and on-premises network
    You connect your existing WAN (Wide Area Network) hardware (like routers or switches) to the provider’s facility. On the cloud side, you set up routing in your virtual private cloud (VPC).


Introduction to AWS Direct Connect | Benefits, Locations, Pricing - hosted connection

  1. You exchange data privately
    From then on, data between your on-premises network and cloud resources flows through your private hosted connection, bypassing the public internet.

Key Features of Hosted Connections

  • Scalable Bandwidth: Multiple speeds available (50 Mbps up to 10 Gbps or more, depending on provider).
  • Rapid Provisioning: Often established in minutes or hours, instead of the weeks required for fully dedicated fiber.
  • Secure Transmission: Data does not traverse the public internet, enhancing privacy and protection against potential threats.
  • Highly Available: Providers offer redundant paths and failover options.
  • Flexible Management: Manage multiple hosted connections to different cloud regions or accounts, and dynamically adjust bandwidth as needed.

Hosted Connection vs. Dedicated Connection: What’s the Difference?

It’s easy to confuse hosted with dedicated connections, as both provide private access to the cloud. Here’s a quick breakdown:

Hosted Connection Dedicated Connection
Ownership Shared infrastructure, logical separation Physical, single-customer fiber
Provisioning Quick (minutes/hours) Longer (days/weeks)
Bandwidth Predefined increments (e.g., 50 Mbps–10 Gbps) Full port speeds (1 Gbps, 10 Gbps, etc.)
Flexibility Easily scaled up/down Fixed bandwidth, less flexible
Cost Usually pay-as-you-go or subscription Higher up-front & recurring costs
Management Handled by provider Managed by the customer

Hosted connections are perfect if you want speed, flexibility, and lower upfront cost. Dedicated connections are better if you need guaranteed bandwidth or have strict regulatory requirements.


Steps to Set Up a Hosted Connection

Let’s break down the implementation into manageable parts:


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1. Choose a Cloud Service and Provider

  • Identify which cloud services (e.g., AWS, Huawei Cloud) you need to connect with.
  • Partner with a certified service/network provider who offers hosted connections.

2. Request the Hosted Connection

  • Through your provider’s portal or by contacting support, request a new hosted connection.
  • Select the desired speed and redundancy options.

3. Configure On-Premises Network

  • Connect your existing network hardware (firewall, router, switch) to the provider’s handoff equipment at your data center site.
  • Confirm compatibility and required routing protocols (e.g., Border Gateway Protocol/BGP).

4. Set Up Virtual Interfaces in the Cloud

  • In your chosen cloud’s networking console, accept and configure the hosted connection.
  • Assign it to the relevant Virtual Private Cloud (VPC), define VLANs, and set up routing.

5. Test and Monitor


AWS Direct Connect - GeeksforGeeks - hosted connection

  • Validate the setup by transferring test data.
  • Monitor performance, latency, and throughput using available network monitoring tools.

Benefits of Using Hosted Connections

Hosted connections bring several real advantages to organizations:

  • Improved Performance: Lower latency and consistent speeds enhance application responsiveness.
  • Enhanced Security: Data avoids the vulnerabilities of the public internet.
  • Simplified Compliance: Easier to meet certain regulatory standards when data paths are private.
  • Cost Predictability: Pay only for the bandwidth you need; no major upfront capital expense.
  • Business Continuity: Backup connections and fast failover keep you online, even during outages.
  • Global Reach: Easily extend your private cloud access to new regions without deploying new physical lines.

Challenges and Considerations

While hosted connections are powerful, you should also plan for:

  • Bandwidth Limits: Maximum speeds can be lower than dedicated connections, depending on provider capabilities.
  • Potential Contention: Although logical links are private, physical fiber is shared. Heavy use by other tenants might impact your throughput, though this is rare.
  • Provider Reliance: Relying on third-party networks means you must trust their uptime and management practices.
  • Complexity in Multi-Cloud: Connecting to multiple cloud environments can require additional setup and coordination.
  • Cost Management: Ongoing subscription or usage charges add up; monitor your consumption carefully.

Best Practices for Implementing Hosted Connections

To make the most out of your hosted connection, consider these practical tips:

1. Assess Your Real Bandwidth Needs

  • Start with a thorough analysis of your current and projected cloud traffic.
  • Avoid overprovisioning (paying for unused capacity), but leave room for future growth.

2. Plan for Redundancy

  • Deploy at least two hosted connections (to different providers/sites) for failover and maximum uptime.

3. Monitor Performance

  • Use available analytics and alerts to track bandwidth usage, latency, packet loss, and errors.
  • Quickly investigate anomalies to prevent or mitigate outages.

4. Regularly Review Configuration

  • Ensure that firewalls, routing tables, and security groups are kept up to date.
  • Revise policies and architecture as your network or business changes.

5. Leverage Provider Support

  • Take advantage of 24/7 support and fast troubleshooting from your provider.
  • Participate in any training or documentation sessions to boost your in-house expertise.

Cost Optimization Tips

Managing costs is a key aspect of leveraging hosted connections—here are a few strategies:

  • Right-Size Bandwidth: Only pay for the speed you actively use. Upgrade in increments if demand grows.
  • Review Pricing Models: Providers may offer pay-as-you-go, by-the-hour, or monthly subscriptions—pick what’s best for your usage patterns.
  • Consolidate Traffic: Where possible, use one connection for multiple workloads or accounts.
  • Monitor Egress Fees: While the connection is private, some providers may still charge for data leaving the cloud. Factor this into total cost of ownership.
  • Schedule Transfers: If able, schedule large data movements during off-peak hours, when bandwidth pricing may be lower.
  • Compare Providers: Look at support, uptime guarantees, and bundled discounts before committing.

Hosted Connections Across Different Cloud Providers

While the general concepts remain the same, each cloud provider puts its own spin on hosted connections:

  • AWS: Hosted connections via AWS Direct Connect partners, delivered at various speeds, and provisioned in minutes. Integrated with AWS VLANs, VPCs, and routing.
  • Huawei Cloud: Similar model as AWS, with hosted private lines offering direct VPC connection across regions.
  • Third-Party Platforms (such as Megaport): Allow you to spin up and manage multiple cloud hosted connections from a single, unified interface, making multicloud and global rollouts easier.

Always check your chosen provider’s documentation for exact configuration steps and available service levels.


Common Use Cases

Hosted connections are an ideal fit for:

  • Enterprise Hybrid Cloud: Seamlessly blend your on-premises environment with cloud resources for disaster recovery, big data analysis, or burst workloads.
  • Regulatory Compliance: Meet security or jurisdictional requirements for certain industries, such as finance or healthcare.
  • Consistent Application Performance: Ensure mission-critical apps always have the bandwidth they need.
  • Multi-Site Connectivity: Link branch offices directly to the cloud without expensive multiple WAN circuits.
  • Fast Migration Projects: Move large volumes of data into the cloud securely and quickly.

Frequently Asked Questions (FAQs)

What’s the difference between a hosted connection and a dedicated connection?
A hosted connection uses a shared physical network with logical separation, making it quicker and easier to provision with flexible bandwidth options. A dedicated connection reserves a physical circuit just for your company, offering maximum throughput and control but requires more time and higher cost to implement.

Is a hosted connection more secure than using the public internet?
Yes. Hosted connections provide a private path between your network and the cloud, reducing exposure to internet-based threats. Although not inherently encrypted, they’re isolated from the public internet and can work alongside VPNs or other encryption solutions for even better security.

How quickly can I get a hosted connection set up?
Hosted connections can often be provisioned within minutes or hours. Once your network provider approves your request, you’ll configure your cloud router and on-premises settings to get up and running quickly.

What happens if my hosted connection goes down?
Cloud providers and network partners generally recommend provisioning at least two connections (with different providers or at different sites) for redundancy. If one link fails, your traffic automatically reroutes over the backup connection, keeping your services available.

How do I monitor and manage my hosted connection usage?
Most providers offer web portals, dashboards, and APIs to help you track bandwidth usage, errors, latency, and uptime. Monitoring tools integrated with your cloud platform can trigger alerts or help optimize traffic flow for peak efficiency.


Conclusion

Hosted connections are an accessible, cost-effective way to get reliable, private access to the cloud without the commitment or complexity of fully dedicated physical lines. They are simple to set up, scalable according to business needs, and come with built-in support from established network providers. With proper planning, monitoring, and cost management, hosted connections can become a central pillar for your hybrid or multicloud strategy—delivering all the performance, security, and flexibility modern enterprises require.

If you have more questions or need help choosing the right connection type for your business, don’t hesitate to consult your provider’s resources or reach out to their support specialists. Hosted connections might be the connectivity upgrade your cloud journey needs!