Solving High Egress Costs with ExpressRoute & Multi-Cloud Connect

Tata Communications IZO™+ Multi-Cloud Connect is a software-defined interconnect-as-a-service solution that streamlines multi-cloud connectivity. It allows enterprises to securely and seamlessly connect applications, data centres, branches, and clouds through a single pane of glass. Over the years, we have worked with multiple customers on various use cases, and this series of short blogs will describe the before-and-after scenarios for each of them.

The customer landscape: Supporting remote agents with virtual desktops

A leading process outsourcing company was using Virtual Desktop Infrastructure (VDI) hosted on Microsoft Azure to support its remote workforce. VDI allows users to access desktops and applications from virtually any device, as these environments are hosted centrally on secure servers or in the cloud rather than locally on user devices.

This setup enabled the company to scale operations efficiently across geographies, enhance data security, and streamline IT management. With VDI, remote and hybrid working models become more secure and cost-effective—two critical needs for companies with widely distributed teams and high operational demands.

Existing cloud design: Azure-based VDI with NAT gateway

The company had deployed their VDI infrastructure in Microsoft Azure’s West India (Mumbai) region. Remote agents from multiple cities and towns across India are connected to these VDI environments daily to perform business processes.

Following Microsoft Azure’s Well-Architected Framework, the VDI machines were hosted in a private subnet and connected to the internet via a Network Address Translation (NAT) gateway. This architecture ensured security by isolating desktops from public IP exposure while allowing outbound internet access.

However, the business’s operations involved large volumes of outbound data, with each VDI session generating continuous outbound traffic. As this data passed through the NAT gateway, the company incurred both NAT gateway charges and cloud egress charges for outbound data transfer, reaching approximately 1.45 crores monthly. This quickly translated into high monthly costs.

Learn How: A major automotive company accelerated its de-merger with multi-cloud connect.

The core problem: Escalating cloud egress costs

Although the technical setup aligned with industry best practices, it wasn’t cost-efficient for the company’s data-heavy workloads. With a growing number of remote users and increasing data traffic per session, the charges associated with Azure’s NAT gateway and data egress cost began to impact the IT budget significantly.

Cloud egress costs—the charges for data that exits a cloud provider’s network—are often underestimated during cloud architecture planning. In VDI environments, where data constantly flows between the cloud and users, these costs can escalate rapidly.

The company needed a way to reduce these expenses without compromising on performance, security, or user experience.

The solution: Azure ExpressRoute via IZO™+ Multi-Cloud Connect

Tata Communications’ solution architects recommended redesigning the outbound internet path using Tata Communications IZO™+ Multi-Cloud Connect. This platform offers direct, secure, and scalable multi-cloud connectivity for enterprises with complex cloud needs.

The new design included:

• Azure ExpressRoute connection from Microsoft Azure to a local IZO™+ Multi-Cloud Connect node in Mumbai
• Deployment of a Virtual Network Function (VNF) device, specifically a Cisco Router 8000v, at this node
• Enabling an internet port on the VNF device, which served as a secure internet breakout point

By rerouting traffic through ExpressRoute and using Tata Communications’ internet infrastructure instead of Azure’s native NAT gateway, the company could now bypass expensive cloud egress charges while retaining the same level of functionality and security.

Measurable benefits: Cost savings and maintained security

The results were impactful:

• 24% reduction in total costs, primarily due to the elimination of NAT gateway charges and lower egress costs through Tata Communications
• Preservation of the original security posture, as private subnet access policies remained unchanged
• Seamless end-user experience, with no change in how remote agents accessed their desktops, thanks to the low-latency, high-bandwidth ExpressRoute connection that maintained consistent performance.
• Improved architectural flexibility for future scaling or regional expansion

The company now benefits from a stable, secure, and cost-optimised infrastructure for its VDI-based operations, made possible by rethinking cloud routing and leveraging smart multi-cloud connectivity options.

Why this matters: Managing egress cost without compromising cloud strategy

This use case is a prime example of how strategic network design can mitigate overlooked yet substantial costs in cloud environments. Organisations often focus on compute and storage optimisation but ignore outbound cloud egress costs, which can quietly consume budgets—especially in VDI, media, or analytics-heavy workloads.

With platforms like Tata Communications IZO™+ Multi-Cloud Connect, businesses can:

• Simplify complex cloud routing
• Reduce their dependence on public internet pathways
• Control and minimise cloud egress charges
• Maintain robust, secure access across globally distributed teams

How your organisation can save on cloud costs?

Are cloud egress charges eating into your budget? Do you manage data-heavy remote workloads like VDI, video, or analytics?

Here’s what you can do next:

1. Use our cloud cost estimation calculator to estimate your potential egress savings
2. Learn more about Tata Communications IZO™+ Multi-Cloud Connect and its wide use case coverage
3. Book a free consultation with our experts to discuss your architecture