Quick Answer
The answer is that the ability to attach VPN and Direct Connect connections, along with centralized routing and simplified network management, are key benefits of AWS Transit Gateway over VPC peering. This is correct because Transit Gateway acts as a hub-and-spoke router, allowing you to connect hundreds of VPCs and on-premises networks through a single gateway, whereas VPC peering creates a mesh of point-to-point connections that require manual route table updates and cannot natively support VPN or Direct Connect attachments. On the AWS Certified Advanced Networking Specialty ANS-C01 exam, this distinction tests your understanding of scalable multi-VPC architectures and often appears in scenario-based questions where you must choose between cost, complexity, and centralized control. A common trap is assuming VPC peering can handle transitive routing, which it cannot, while Transit Gateway inherently supports transitive routing across all attachments. Remember the mnemonic “Hub for Hubris” — Transit Gateway is the hub that avoids the hubris of managing dozens of individual peering connections.
This ANS-C01 practice question tests your understanding of network design. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which THREE are benefits of using AWS Transit Gateway over VPC peering in a multi-VPC environment? (Select THREE.)
Centralized management of network policies
Single point of control.
Higher bandwidth per connection
Why wrong: Bandwidth is same.
Simpler configuration for a few VPCs
Why wrong: Peering is simpler for few.
Lower cost compared to VPC peering
Why wrong: Can be more expensive.
Transitive routing between all attached VPCs
Key benefit.
Ability to attach VPN and Direct Connect connections
Supports hybrid connectivity.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Centralized management of network policies
AWS Transit Gateway provides a centralized hub for managing network policies across multiple VPCs, allowing you to apply consistent routing, security, and access controls from a single point. This eliminates the need to manage individual VPC peering connections and their route tables, reducing operational overhead and the risk of misconfiguration.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
Centralized management of network policies
Why this is correct
Single point of control.
Related concept
Read the scenario before looking for a memorised answer.
Higher bandwidth per connection
Why it's wrong here
Bandwidth is same.
Simpler configuration for a few VPCs
Why it's wrong here
Peering is simpler for few.
Lower cost compared to VPC peering
Why it's wrong here
Can be more expensive.
Transitive routing between all attached VPCs
Why this is correct
Key benefit.
Related concept
Read the scenario before looking for a memorised answer.
Ability to attach VPN and Direct Connect connections
Why this is correct
Supports hybrid connectivity.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
AWS often tests the misconception that Transit Gateway always reduces cost or complexity compared to VPC peering, but the trap here is that for small numbers of VPCs (e.g., 2-3), VPC peering is simpler and cheaper, while Transit Gateway's benefits (centralized management, transitive routing, hybrid connectivity) only become advantageous at scale.
Detailed technical explanation
Transitive routing in Transit Gateway is enabled by its internal routing table, which propagates routes between all attached VPCs, VPNs, and Direct Connect virtual interfaces, allowing any-to-any connectivity without full-mesh peering. This is achieved through a hub-and-spoke architecture where the Transit Gateway acts as a Layer 3 router, supporting up to 5,000 attachments per gateway. In a real-world scenario, a company with 50 VPCs would need 1,225 VPC peering connections for full mesh, but only 50 Transit Gateway attachments, drastically simplifying management and reducing the risk of route table limits.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A startup's cloud architect reviews their monthly bill and notices costs are higher than expected for a long-running batch job. Switching from on-demand instances to Reserved Instances — or using Spot/Preemptible VMs — can reduce compute costs by up to 72 %. Questions like this test whether you understand the tradeoffs between commitment, flexibility, and cost across cloud pricing models.
What to study next
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FAQ
Network Design — This question tests Network Design — Read the scenario before looking for a memorised answer..
The correct answer is: Centralized management of network policies — AWS Transit Gateway provides a centralized hub for managing network policies across multiple VPCs, allowing you to apply consistent routing, security, and access controls from a single point. This eliminates the need to manage individual VPC peering connections and their route tables, reducing operational overhead and the risk of misconfiguration.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Last reviewed: Jun 30, 2026
This ANS-C01 practice question is part of Courseiva's free Amazon Web Services certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the ANS-C01 exam.
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