Why Network Architecture Still Matters in the Age of the Cloud

Take back control of your infrastructure.
The OpenMetal team is standing by to assist you with scoping out a fixed-cost model based infrastructure plan to fit your needs, budgets and timelines. 

Schedule a Meeting

The cloud era promised to make infrastructure invisible. Virtual machines would spin up instantly, storage would scale infinitely, and networking would “just work” without requiring specialized knowledge or strategic planning. For over a decade, this abstraction delivered tremendous value—teams could focus on applications instead of hardware, and businesses could scale without massive capital expenditure.

But something shifted along the way. As workloads became more sophisticated and data-intensive, the limitations of treating networking as a black box became apparent. Today’s AI training clusters, real-time analytics platforms, and global SaaS applications demand networking strategies that hyperscale clouds simply weren’t designed to support transparently.

The assumption that networking could be commoditized is proving costly—literally and strategically.


The Cloud-Era Assumption That’s Breaking Down

Hyperscale cloud providers built their networking models around abstractions that hide complexity but also hide control. When you deploy a virtual machine on AWS, Azure, or Google Cloud, the underlying network architecture remains opaque. You can’t see how traffic flows between your instances, you can’t predict when performance will degrade due to noisy neighbors, and you certainly can’t anticipate your monthly egress bill with any precision.

This opacity creates several critical problems:

Unpredictable Egress Economics: Hyperscalers charge for every gigabyte of outbound traffic at rates that can quickly spiral out of control. A media company streaming content or an AI startup training models with large datasets can face bills that exceed their compute costs by multiples. These charges hit without warning—there’s no mechanism for bursting temporarily without penalty.

Multi-Tenant Performance Variability: When your workloads share network infrastructure with thousands of other tenants, performance becomes a lottery. Your database replication might run smoothly one day and crawl the next, with no visibility into why or when it might improve.

Limited Isolation Options: While hyperscalers offer VPCs and security groups, true network isolation requires jumping through complex hoops or paying premium prices. For enterprises handling sensitive data or building multi-tenant applications, the default networking options often fall short of compliance requirements.

Vendor Lock-In Through IP Management: Try moving workloads between cloud providers or implementing genuine hybrid architectures, and you’ll quickly discover how IP address management becomes a strategic constraint. Each provider wants to own your network identity, making portability expensive and complex.

Why Networking Is Back in Strategic Focus

Three major shifts are forcing IT leaders to reconsider networking as a strategic component rather than an invisible utility:

AI and Data Gravity: Machine learning workloads generate massive amounts of internal traffic for training, inference, and model synchronization. When private network traffic between your GPU clusters costs as much as the compute time itself, your networking architecture directly impacts your AI strategy’s viability.

Hybrid and Multi-Cloud Reality: The “cloud-first” era is giving way to “cloud-smart” strategies where workloads span multiple environments based on performance, compliance, and economic factors. This requires networking that travels with your applications, not networking that locks them in place.

Security and Compliance Evolution: Modern threats and regulatory requirements demand network architectures that provide true isolation, not just logical separation. When your SaaS platform serves customers in different regulatory jurisdictions, your network design becomes a competitive differentiator and a compliance necessity.

OpenMetal’s Architectural Differentiators: Transparency Over Abstraction

OpenMetal’s Hosted Private Cloud treats networking as a visible, controllable component of your infrastructure stack rather than hiding it behind abstractions. This approach delivers both immediate economic benefits and strategic flexibility.

Public Networking That Makes Economic Sense

Every bare metal server in OpenMetal’s infrastructure includes substantial outbound traffic as part of the baseline service. Beyond those generous limits, costs follow 95th percentile pricing—a model standard in enterprise data centers but rare in cloud services.

Unlike per-gigabyte billing that penalizes every spike in traffic, 95th percentile pricing measures your sustained usage pattern over a month and bills only for that baseline. You can burst to higher bandwidth for short periods without facing massive overage charges. This model aligns costs with actual business patterns rather than punishing success.

For enterprises managing their own IP addressing, OpenMetal supports Bring Your Own IPs (BYOIP) or can provide entire IP blocks directly. This flexibility simplifies routing across hybrid environments and eliminates the vendor lock-in that comes with provider-specific subnets.

Private Networking Built for Performance

Each bare metal server comes equipped with dual 10 Gbps network interfaces, providing 20 Gbps of aggregate bandwidth for private communications. This isn’t shared or virtualized—it’s dedicated capacity for your workloads.

More importantly, all private network traffic is completely unmetered. Whether you’re replicating databases, synchronizing distributed storage, or training machine learning models across multiple nodes, internal data movement never appears on your bill. This economic model removes one of the most unpredictable cost factors in scaling data-intensive applications.

Private traffic runs over customer-specific VLANs, ensuring hardware-level isolation from other tenants. These VLANs support VXLAN out of the box, enabling modern software-defined networking approaches without additional complexity or vendor dependencies.

Security and Resilience by Design

The platform includes DDoS protection up to 10 Gbps per IP address, defending workloads from volumetric attacks without requiring integration with third-party services or additional monthly subscriptions.

Each server provides IPMI remote management capabilities, giving administrators direct out-of-band control over hardware even when primary networks are compromised. This operational resilience proves invaluable during security incidents or network disruptions.

Network uptime commitments are backed by contractual SLAs, providing accountability that abstracts you from infrastructure concerns without hiding infrastructure transparency.

Real-World Impact: Where Network Design Determines Success

Multi-Tenant SaaS Platforms

SaaS providers serving enterprise customers need both performance isolation and compliance guarantees. When your application handles data for customers in healthcare, finance, and government sectors simultaneously, logical separation isn’t sufficient. Customer-specific VLANs provide the isolation these environments demand, while predictable egress costs align with SaaS business models that depend on consistent unit economics.

Media and Content Distribution

Video platforms and content delivery networks face brutal egress economics in hyperscale clouds. A streaming spike during a major event can generate bills that eclipse months of compute costs. OpenMetal’s included bandwidth and 95th percentile pricing transform these cost spikes from business threats into manageable capacity planning exercises.

AI and Machine Learning Workloads

Training large models requires massive data movement between compute nodes, storage systems, and parameter servers. When private network traffic is unmetered and provides dedicated 20 Gbps capacity per server, teams can focus on algorithmic improvements rather than optimizing for network cost avoidance.

Hybrid Cloud Strategies

Enterprises implementing genuine hybrid architectures need consistent networking across environments. With BYOIP support and direct IP block allocation, organizations can maintain unified routing policies across public clouds, edge deployments, and private infrastructure without complex NAT configurations or VPN bottlenecks.

Rethinking “Invisible” Infrastructure

The cloud industry’s push toward invisible infrastructure served an important purpose—it democratized access to enterprise-grade capabilities and accelerated application development. But invisibility and lack of control aren’t the same thing.

OpenMetal’s approach demonstrates that networking can be both simple to consume and transparent in its operation. You don’t need to become a network engineer to benefit from dedicated bandwidth, but you can see exactly how your traffic flows and what you’re paying for.

This transparency enables strategic decision-making. When you can predict networking costs, you can build business models that depend on data movement. When you control IP addressing, you can architect genuinely portable applications. When you have dedicated private bandwidth, you can design distributed systems that would be prohibitively expensive on usage-based platforms.

The difference between invisible infrastructure and transparent infrastructure isn’t complexity—it’s control and predictability.

Networking as Strategic Advantage

The cloud era taught us to treat infrastructure as a commodity, but the most successful organizations are learning to identify where strategic differentiation matters. Networking is returning to that strategic category because modern workloads depend on it so fundamentally.

Your network architecture affects application performance, operational costs, security posture, and business model viability. These impacts are too significant to abstract away completely, regardless of how convenient that abstraction might seem initially.

OpenMetal’s hosted private cloud proves that you can have both simplicity and control. By making networking visible and predictable rather than hidden and surprising, organizations regain the ability to make strategic infrastructure decisions that align with business objectives rather than working around provider limitations.

The question isn’t whether networking matters in the age of the cloud—it’s whether your infrastructure provider treats it as a strategic component or a hidden cost center. Choose accordingly.

Connect with the OpenMetal team to find out how to stop letting networking be a cost center and become a strategic advantage for your infrastructure and business.

Schedule a Meeting


OpenMetal can help with a PoC Cloud

Start with a risk-free evaluation: Take advantage of OpenMetal’s Proof of Concept program to validate how hosted private cloud can transform your delivery model. 


 


Explore More on Our Blog

The cloud era promised invisible networking, but today’s AI workloads, hybrid strategies, and compliance requirements demand architectural control. OpenMetal’s hosted private cloud treats networking as a strategic advantage through transparent pricing, dedicated bandwidth, and true isolation.

Private cloud infrastructure solves the unique challenges blockchain consortia face with public cloud – eliminating data egress fees, noisy neighbor effects, and compliance complexity while enabling secure multi-party collaboration with predictable costs and performance.

Enterprise cloud infrastructure shouldn’t be a black box. Learn why OpenMetal’s transparent approach with visible pricing, dedicated bare metal, and full operational control delivers better outcomes than invisible hyperscale cloud platforms for CFOs and CTOs.