Azure ExpressRoute SKUs and Providers Selection Guide
Azure ExpressRoute provides private, dedicated connectivity between on-premises infrastructure and Microsoft cloud services. Unlike VPN over the public internet, ExpressRoute offers predictable latency, higher reliability, and SLA-backed performance.
Choosing the correct ExpressRoute SKU and provider is a critical architectural decision affecting cost, scalability, global reach, and compliance.
What Is Azure ExpressRoute?
ExpressRoute is a private Layer 3 connection from your enterprise network to Microsoft’s edge network.
It supports:
• Azure IaaS and PaaS
• Microsoft 365 (with approval)
• Dynamics 365
• Azure Government (Separate Regions)
It uses a service provider or exchange partner to establish the connection.
ExpressRoute SKUs
There are three primary SKUs:
Local
Standard
Premium
Each SKU defines geographic reach and routing capabilities.
ExpressRoute SKU Comparison
|
SKU |
Region Connectivity |
Global Connectivity |
VNet Limits |
Route Limits |
Typical Use Case |
|
Local |
Single peering location only |
No |
Lower |
Lower |
Single-region workloads |
|
Standard |
Within geopolitical region |
No |
Moderate |
Moderate |
Multi-region within same geography |
|
Premium |
Global connectivity across regions |
Yes |
Higher |
Higher |
Global enterprise connectivity |
Detailed Capability Comparison
|
Feature |
Local |
Standard |
Premium |
|
Global reach |
No |
No |
Yes |
|
Cross-geography VNet connectivity |
No |
No |
Yes |
|
Max VNets per circuit |
Limited |
Higher |
Highest |
|
Route table size |
Smaller |
Larger |
Largest |
|
Microsoft 365 support |
With approval |
With approval |
With approval |
|
Data transfer scope |
Local region only |
Geopolitical region |
Global regions |
|
Price tier |
Lowest |
Medium |
Highest |
Enterprise Design Considerations
|
Design Factor |
Local SKU |
Standard SKU |
Premium SKU |
|
Suitable for hub-and-spoke |
Limited |
Yes |
Yes |
|
Supports Global Reach |
No |
No |
Yes |
|
Best for global companies |
No |
Limited |
Yes |
|
Enterprise scalability |
Low |
Medium |
High |
|
Long-term expansion ready |
No |
Partial |
Yes |
Bandwidth options vary by provider and region.
Common bandwidth tiers:
|
Bandwidth Tier |
Typical Use Case |
Organization Size |
Notes |
|
50 Mbps |
Testing, pilot, small branch connectivity |
Small branch office |
Entry-level, limited throughput |
|
100 Mbps |
Small production workloads |
Small organization |
Suitable for light hybrid traffic |
|
200 Mbps |
Moderate production usage |
Small–medium business |
Supports steady hybrid workloads |
|
500 Mbps |
Enterprise regional workloads |
Medium organization |
Good for hub-and-spoke architecture |
|
1 Gbps |
Large enterprise production |
Enterprise |
Common enterprise baseline |
|
2 Gbps |
High-volume workloads |
Large enterprise |
Suitable for heavy Azure usage |
|
5 Gbps |
Data-heavy applications |
Global enterprise |
Used for large migrations and DR |
|
10 Gbps |
Massive enterprise backbone connectivity |
Global enterprise |
High-performance, mission-critical workloads |
Bandwidth and Architectural Considerations
|
Bandwidth Tier |
Recommended For |
DR Scenarios |
Large Data Migration |
Cost Impact |
Upgrade Flexibility |
|
50–100 Mbps |
Development, testing, branch offices |
Limited |
Not ideal |
Low |
Can upgrade |
|
200–500 Mbps |
Production workloads |
Yes |
Moderate |
Medium |
Can upgrade |
|
1–2 Gbps |
Enterprise production |
Yes |
Yes |
High |
Scalable |
|
5–10 Gbps |
Global backbone and large enterprises |
Yes |
Excellent |
Highest |
Designed for scale |
Key Planning Factors for Bandwidth Selection
|
Planning Factor |
Why It Matters |
|
Peak traffic usage |
Avoid saturation during business hours |
|
Backup and replication traffic |
DR replication increases bandwidth needs |
|
ExpressRoute FastPath usage |
Higher tiers benefit more from FastPath |
|
Future growth |
Plan for 2–3 year scaling |
|
Azure region expansion |
Multi-region increases traffic |
|
Microsoft 365 routing (if used) |
Can significantly increase usage |
|
Latency sensitivity |
Higher bandwidth reduces congestion risk |
Azure ExpressRoute vs VPN Gateway – Throughput Comparison
|
Feature |
Azure VPN Gateway |
Azure ExpressRoute |
|
Connectivity Type |
Encrypted over public internet |
Private dedicated circuit |
|
Maximum Throughput |
Up to ~10 Gbps (depends on SKU) |
Up to 10 Gbps per circuit |
|
Typical Real-World Throughput |
1–5 Gbps depending on SKU |
Consistent near provisioned bandwidth |
|
SLA |
Lower |
Higher |
|
Latency |
Internet dependent |
Predictable, lower latency |
|
Jitter |
Variable |
Low |
|
Packet Loss |
Internet dependent |
Very low |
|
Encryption |
IPsec mandatory |
Not encrypted by default |
|
Cost |
Lower |
Higher |
VPN Gateway SKU Throughput
|
VPN Gateway SKU |
Approx. Aggregate Throughput |
Suitable For |
|
VpnGw1 |
Up to ~650 Mbps |
Small production workloads |
|
VpnGw2 |
Up to ~1 Gbps |
Medium workloads |
|
VpnGw3 |
Up to ~1.25 Gbps |
Larger hybrid deployments |
|
VpnGw4 |
Up to ~5 Gbps |
Enterprise traffic |
|
VpnGw5 |
Up to ~10 Gbps |
High-performance enterprise |
ExpressRoute Bandwidth vs Real Throughput
|
ExpressRoute Tier |
Provisioned Bandwidth |
Real-World Performance |
|
50–100 Mbps |
50–100 Mbps |
Near full utilization |
|
200–500 Mbps |
200–500 Mbps |
Consistent, predictable |
|
1–2 Gbps |
1–2 Gbps |
Enterprise stable throughput |
|
5–10 Gbps |
5–10 Gbps |
High-performance backbone connectivity |
Premium does not increase bandwidth automatically. It increases scope and limits.
ExpressRoute Providers
There are two main provider models:
1. Connectivity Provider (MPLS Provider)
Example: AT&T, Verizon, BT, Tata
2. Exchange Provider (Colocation)
Example: Equinix, Digital Realty
Connectivity Provider Model
• Uses MPLS WAN
• Integrated into enterprise network
• Managed service
• Easier for traditional enterprises
Exchange Provider Model
• Direct connection at colocation facility
• Higher control
• Lower latency
• Requires presence at exchange
Things to Think About When Choosing a Provider
1. Geographic Presence
Does the provider have presence in your required peering location?
2. Latency Requirements
Financial systems require ultra-low latency. Manufacturing may not.
3. SLA and Redundancy
Does the provider support dual circuits?
Best Practice:
Deploy dual ExpressRoute circuits in different peering locations.
4. Scalability
Can bandwidth be upgraded without service interruption?
5. Cost Model
Some providers charge:
• Port fee
• Data transfer
• Cross-connect fee
• Monthly recurring fee
6. Microsoft Peering Approval
Microsoft 365 routing over ExpressRoute requires approval.
Architectural Considerations
1. Redundancy
Always deploy:
• Dual circuits
• Dual routers
• Dual connections to Microsoft edge
2. FastPath
ExpressRoute FastPath bypasses gateway data plane for improved performance.
Best for:
• High throughput workloads
• Large-scale production systems
3. Private Peering vs Microsoft Peering
Private Peering:
Used for Azure IaaS and PaaS
Microsoft Peering:
Used for Microsoft SaaS services
4. Global Reach
Premium SKU enables Global Reach:
Connect two ExpressRoute circuits in different regions through Microsoft backbone.
5. Integration with Hub-and-Spoke
Typical Enterprise Architecture:
On-Prem → ExpressRoute → Hub VNet → Spokes
Use UDR and Azure Firewall to control traffic.
Common Mistakes
• Choosing Local SKU for multi-region architecture
• Not planning route limits
• Forgetting redundancy
• Ignoring provider SLA
• Mixing ExpressRoute and VPN without routing strategy
Security Considerations
ExpressRoute is private but not encrypted by default.
Best Practice:
• Use IPsec overlay if required
• Implement Azure Firewall
• Use NSGs and route control
• Monitor with Network Watcher
When to Choose Each SKU
Choose Local when:
• Single-region deployment
• Cost-sensitive workloads
• No global expansion planned
Choose Standard when:
• Multi-region within same geography
• Enterprise workloads
• Balanced cost vs capability
Choose Premium when:
• Global enterprise
• Multiple geographies
• Need Global Reach
• Large route scale
Final Thoughts
ExpressRoute is not just a connectivity solution. It is a foundational enterprise architecture decision.
Choosing the right SKU and provider impacts:
• Cost
• Scalability
• Performance
• Compliance
• Global expansion
For enterprise-grade deployments, Standard or Premium with dual circuits and proper routing design is typically recommended.
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