AWS and Cloudanix team co-authored this blog: Real-Time Threat and Anomaly Detection for Workloads on AWS

Mastering Network Segmentation in AWS: Security, Simplicity, and the 3 AM Test with Tom Adamski

Tom Adamski shares insights on network segmentation in AWS, from security groups and VPCs to Zero Trust and the importance of simplicity.

Tom Adamski, Principal Solutions Architect at AWS specializing in networking, brings a unique perspective to cloud security. With a background spanning economics, ISP operations, and Telco network design, Tom understands how to model complex systems while keeping them manageable.

In this episode, Tom breaks down the fundamentals of network segmentation in AWS, explains why simplicity beats complexity every time, and shares how Zero Trust is transforming network architecture. His “3 AM test” for network design has become a guiding principle for organizations building secure, scalable cloud environments.

You can read the complete transcript of the episode here >

What is network segmentation and why does it matter?

Tom uses a simple analogy to explain network segmentation: think of it like plumbing in a building. You have hot water pipes and cold water pipes—both carry water, but they serve different purposes and should never mix until they reach a specific control point, like a tap.

Similarly, you wouldn’t mix a sewage line with a water pipe unless it went through a treatment facility first. Network segmentation creates these isolated units within your environment.

While it’s possible to run a flat network successfully, segmentation serves as a critical defense-in-depth layer. The primary drivers for implementing it include:

  • Risk assessment: Aligning with data classification needs
  • Compliance: Meeting requirements like PCI, which mandate keeping payment networks isolated
  • Blast radius control: Separating production from non-production environments
  • Management plane separation: Preventing human errors in test environments from impacting production

Tom emphasizes that segmentation isn’t just about the data plane (traffic flow)—it also applies to the management and control plane. This separation prevents configuration changes in non-production from accidentally affecting live services.

What is the “3 AM test” for network design?

Tom’s most important rule for network design is what he calls the “3 AM test”:

“Any design needs to pass the 3 AM test, where someone can wake up at 3 AM to get paged, look at the network diagram, and immediately understand what’s going on.”

Cloud environments offer immense flexibility, allowing for highly complex configurations. But complexity often leads to unmanageability. To maintain simplicity:

  • Avoid over-granularity: Don’t use the network for extremely granular controls if simpler methods exist
  • Understand the limits: AWS Transit Gateway limits route tables to 20 by default to discourage customers from creating a unique route table for every VPC
  • Start with requirements: Don’t start with the tool—start with the risk assessment and map it to technical capabilities
  • Validate continuously: Use tools like AWS Reachability Analyzer in CI/CD pipelines to verify that paths (e.g., prod to dev) don’t exist after changes

The more complex your network becomes, the harder it is to troubleshoot during an incident. Simplicity isn’t just elegant—it’s essential for operational resilience.

How should you use security groups, NACLs, and firewalls?

These tools should be viewed as an “AND” rather than an “OR”—they provide defense in depth. Each has its place:

Security Groups

  • Characteristics: Stateful, default deny, scales to ~1,000 entries
  • Best use case: The default starting point for all resources
  • When to use: Applied to network interfaces/VMs for granular allow rules

Security groups are always on—you can’t deploy a resource in AWS without one. They’re stateful firewalls that span subnets and IP addresses, making them flexible and powerful.

Network Access Control Lists (NACLs)

  • Characteristics: Stateless, limit of 40 entries, default allow
  • Best use case: Optional, for broad deny rules
  • When to use: Blocking specific ports (e.g., Telnet) or IP ranges across a subnet

NACLs are less commonly used because they’re stateless—if you allow traffic one way, you must remember to allow the reverse flow. Tom recommends using them sparingly for broad use cases like denying specific ports or IP ranges.

Firewalls and Deep Packet Inspection

  • Characteristics: Layer 7 inspection, can examine URIs and hostnames
  • Best use case: Advanced security requirements
  • When to use: When decisions need to be based on packet contents, or when you need scale beyond security group limits

For ingress traffic, consider Web Application Firewall (WAF) for specialized protection against web-based attacks.

Why is the VPC the real segmentation boundary?

This is a crucial insight that differs from on-premise networking:

In AWS, the VPC (Virtual Private Cloud) is the effective segmentation boundary, not the subnet.

Unlike on-premise networks where subnets are separated by routers, all subnets within a VPC can talk to each other implicitly. There’s an implicit router inside every VPC, making it more like a layer 2 network than layer 3.

Key implications:

  • Don’t use subnets as security boundaries unless you’re using NACLs
  • Think of subnets as containers for IP addresses
  • Use VPCs to separate different security levels (production, PCI environments, etc.)
  • When traffic leaves the VPC (to Transit Gateway, CloudWAN, etc.), it’s treated as a whole VPC—you can’t get subnet-level granularity

This understanding is critical when designing segmentation strategies in AWS.

How does Kubernetes impact network visibility?

When using Kubernetes (EKS) in AWS, containers receive IP addresses directly from the VPC range through the Container Network Interface (CNI). This makes containers “first-class citizens” in the VPC.

However, there’s an important visibility gap:

The VPC networking layer (Flow Logs, Security Groups) cannot see traffic between two containers on the same worker node.

This traffic never leaves the node, so VPC-level controls don’t apply. To secure this traffic:

  • Use Kubernetes-native constructs: Network policies control communication between services and namespaces
  • Use security groups for pods: AWS now supports security groups for pods to control access to VPC resources
  • Understand the boundary: Traffic leaving the worker node is visible to VPC controls; traffic staying on the node is not

For larger clusters, most traffic will leave the worker node to reach services on other nodes, so VPC-level visibility covers the majority of communication.

How is Zero Trust changing network architecture?

Zero Trust moves security controls beyond simple IP addresses and ports to include identity and context. It builds on top of traditional networking rather than replacing it.

Tom highlights two key AWS services that illustrate this shift:

AWS Verified Access

Replaces traditional remote access VPNs. Users connect to applications over the web, authenticated by an identity provider (Okta, PingOne, etc.). Access decisions are based on:

  • User groups and attributes
  • Device health (integration with CrowdStrike, Jamf)
  • Security posture (antivirus status, encryption)

This provides much more context than traditional VPNs, which only consider username, password, and IP address.

VPC Lattice

An Application Layer 7 proxy for app-to-app communication. It abstracts the underlying network complexity (IPs, load balancers, transit gateways) and allows access policies based on IAM roles.

Key benefits:

  • Eliminates mTLS complexity: No need to manage certificates on every client
  • Uses IAM credentials: Leverage existing IAM roles and policies
  • Simplifies architecture: No need for load balancers or transit gateways for app-to-app communication

Zero Trust doesn’t eliminate traditional network controls—it enhances them with identity and context awareness.

What role do firewalls play in cloud environments?

Firewalls remain the most common security appliance. Almost every conversation about connecting regions or VPCs leads to “how do I firewall this?”

Organizations typically choose between:

  • Third-party vendors: Palo Alto, Fortinet, Checkpoint, ValtX—familiar tools with existing skills and tooling
  • Native managed services: AWS Network Firewall—no infrastructure management or patching required

Gateway Load Balancer: Solving the Availability Problem

Previously, routing traffic to a firewall appliance was fragile. If the appliance died, the route would blackhole traffic because VPC routes aren’t health-aware.

Gateway Load Balancer (GWLB) solved this:

  • Acts as the destination for routes
  • Distributes traffic across multiple firewall instances
  • Handles health checks and failover automatically
  • Enables horizontal scaling by adding more firewall instances

Even AWS Network Firewall uses GWLB under the hood—it’s just managed by AWS so you don’t see it.

What are the best practices for production vs. non-production segmentation?

Tom is emphatic about this: separating production and non-production environments is not just a best practice—it’s essential.

At minimum, separate the data planes:

  • Use different VPCs for production and non-production
  • Use Transit Gateway with separate route tables for each environment
  • Ensure production cannot accidentally communicate with non-production

For the control/management plane, it depends on your change control maturity:

  • Strict separation: Use separate Transit Gateways if you’re making frequent, experimental changes in non-production
  • Shared management: Use a single Transit Gateway with separate route tables if you have strong automation and CI/CD validation

The key is preventing human errors in non-production from impacting production services.

How should organizations approach remote access in the cloud?

The most common pattern is still remote access VPNs (AWS Client VPN or third-party solutions). Users connect to an endpoint in AWS and land inside a VPC, inheriting whatever connectivity that VPC has.

This is why VPC-level segmentation matters—when you bring remote users into a production VPC, they get production access.

However, the landscape is evolving toward Zero Trust Network Access (ZTNA):

  • More context: Beyond IP addresses, consider user identity, device health, and security posture
  • Granular policies: Policy-driven access rather than network-level access
  • Browser-based: Solutions like AWS Verified Access allow browser-based access without VPN clients

The shift is toward making access decisions based on who is accessing what, not just where they’re connecting from.

What should organizations prioritize for network security?

Tom emphasizes three key priorities:

  1. Simplicity: If you can’t understand it at 3 AM, it’s too complex
  2. Defense in depth: Use multiple layers (security groups, NACLs, firewalls) appropriately
  3. Early security involvement: Include security teams early in the development process, not as a final gate

He also stresses the importance of testing—not just security testing, but availability testing. Practice your failover scenarios and disaster recovery procedures. It’s hard work, but when something really happens, you’ll be prepared.

People Also Read

What Our Users Are Saying

Customer Reviews

Cloudanix is trusted by security leaders worldwide to deliver proactive, reliable, and cutting-edge cloud security.

One day, I changed the password of a root account, and my CTO called me within less than a minute to confirm if I did so. I was not expecting a reaction this quick. He told me Cloudanix alerted him of this password change and that he wanted to confirm as it was a critical security notification. I couldn't believe it!

Ritesh Agarwal
Ritesh Agarwal
CEO, Airgap Networks

Compliance is one way of staying secure, but what I want is the ability to go deeper and attain 'true security.' Cloudanix provides us the capability to do so.

Vishal Madan
Vishal Madan
Head of Engineering, iMocha

Cloudanix is building for the future of the cloud, which makes the product all the more desirable.

Ritesh Agarwal
Ritesh Agarwal
CEO, Airgap Networks

Cloudanix gave us the visibility we were missing. Being able to move from permanent access to a robust Just-In-Time (JIT) workflow has fundamentally changed our security posture without slowing down our engineering velocity.

Pavan Kumar Lekkala
Pavan Kumar Lekkala
SRE Lead, HugoHub

We are excited to leverage Cloudanix's comprehensive multi-cloud DevSecOps solution to secure our production workloads on AWS. Cloudanix has demonstrated that it can solve many challenges that DevSecOps teams face while continually adding new features such as SOC2 compliance and drift detection.

Satish Mohan
Satish Mohan
Co-founder & CTO, Airgap Networks

Managing third-party partner access was once a major concern for our security posture. With Cloudanix JIT Cloud, we've effectively achieved zero third-party risk. We can now grant access confidently, knowing that it is temporary, audited, and automatically revoked, resulting in a 100% reduction in our privileged access exposure.

Okesh Badhiye
Okesh Badhiye
Head of Technical Engineering, Finfinity

The snooze feature and responsible alerts have helped us save time and prioritize what to tackle first.

Satish Mohan
Satish Mohan
Co-founder & CTO, Airgap Networks

Implementing Cloudanix JIT internally allowed us to practice what we preach. By eliminating permanent access to our own clouds and databases, we've neutralized the risk of standing privileges, ensuring our own 'keys to the kingdom' are never left exposed.

Girish Manghnani
Girish Manghnani
Managing Partner, Tech Inspira

The problem with permissions is a lot of times, the gaps are left open due to oversights from inside the organization itself. With Cloudanix's CIEM, we get a complete view of user permissions and access. This enables us to update the permissions, reducing the attack surface.

Nilesh Pethani
Nilesh Pethani
Application Architect, iMocha

In the world of Fintech, trust is our currency. Cloudanix provided the frictionless visibility we needed to secure our EKS workloads across AWS, ensuring we stay audit-ready for SOC2 and GDPR without slowing down our engineering velocity.

Amol Naik
Amol Naik
Head of Security & Infrastructure, HugoHub

Cloudanix delivered value within 5 minutes of onboarding. Continuous monitoring, timely detection, and excellent documentation helped us attain a great cloud security posture.

Divyanshu Shukla
Senior DevSecOps, Meesho

Technology strategies and business strategies are in a state of constant change which includes centralization and decentralization of responsibilities. Regardless of strategic shift, we still have intellectual property to protect. Cloudanix are critical partners for us in our public cloud security posture across our three cloud providers.

Jerry Locke
Jerry Locke
Senior Director Global Solutions Engineering, Eversana

Cloudanix has been amazing. They opened up a common Slack channel with us — and it feels like we are talking to our own team and getting things done with Cloud security. The support team is always available, friendly, helpful, and ready to go out of their way.

Satish Mohan
Satish Mohan
CTO, Airgap Networks

Beyond just access management, Cloudanix CSPM has given us a unified view of our AWS environment. The real-time alerting and anomaly detection allow us to prevent any untoward activity before it happens, which is critical for a marketplace connecting 50+ financial institutions.

Okesh Badhiye
Okesh Badhiye
Head of Technical Engineering, Finfinity

For a Fintech company, data is our most valuable — and most sensitive — asset. Cloudanix DAM hasn't just improved our visibility; it has given us control. The ability to mask data and prevent unauthorized queries in real-time is a game-changer for our compliance and customer trust.

Jiten Gala
Jiten Gala
President Engineering and Product, Kapittx

Our clients, especially in the Middle East financial sector, demand absolute accountability. Cloudanix JIT Cloud has been a competitive differentiator for us, allowing us to provide secure, governed access to customer accounts that meet their strictest audit and compliance requirements.

Girish Manghnani
Girish Manghnani
Managing Partner, Tech Inspira

Cloudanix is always on my team's lips because of its exceptional support. Be it a small or big query, Cloudanix has gone above and beyond to resolve them. This one's a keeper for us.

Sujit Karpe
Sujit Karpe
CTO, iMocha

For a long-lasting partnership, great support goes a long way. Cloudanix has delivered exceptional support whenever required. Their edge is their team is always ready to go beyond to solve any issues that we have. This speaks volumes about the culture at Cloudanix.

Akash Maheshwari
Akash Maheshwari
Co-founder, MoveInSync

Beyond the technology, Cloudanix feels like an extension of our own team. Their willingness to stand up a dedicated Middle East tenant for us and provide exceptional support at a sensible price makes them a long-term partner for Hugosave.

Surya Tamada
Surya Tamada
CTO, HugoHub

The real-time notifications that Cloudanix provides are a real lifesaver. Their adaptive notifications ensure that my team stays productive and doesn't get interrupted all the time.

Digvijay Singh
Staff Security Engineer, Meesho

The whole point in technological evolution is to help improve the world we live in. We must protect that and to do so requires an effective and efficient security strategy. The Cloudanix team helped make our public cloud security posture management strategy a reality. The symbiotic relationship we have allows for a continuous feedback loop which is how business should operate.

Larry Wheat
Larry Wheat
Staff Solutions Engineer, Eversana

Ready to see your graph?

Connect a cloud account in under 30 minutes. See every finding rooted in identity, asset, and blast radius — with a fix path attached.

Book a Demo