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I have configured a vpc to communicate with an on-prem private network as outlined here I am able to ping servers in my on-prem network through the virtual gateway. I have two private subnets and my route table associated with each of those subnets is configured as below:

10.255.254.0/23  local
0.0.0.0/0        vgw-xxxxxxx

My expectation is that all of my traffic, internet or otherwise is being communicated over the vgw to the cgw and then be subject to our on-premise firewall policies. In fact the article linked above specifically says that is the case:

The instances in the VPN-only subnet can't reach the Internet directly; any Internet-bound traffic must first traverse the virtual private gateway to your network, where the traffic is then subject to your firewall and corporate security policies.

When running a server on one of the private subnets the output from traceroute looks like this:

traceroute internal ip

My traceroute to www.google.com looks like this:

traceroute to google

as you can see from above traffic to www.google.com is just dying on the first hop.

I know that this can be achieved by adding a NAT to the public subnet, but I would prefer that all traffic flow through the on prem network instead.

What piece am I missing to make this work?

Thomas
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    In the VPN Connection configuration in VPC, under Static IP Prefixes, do you have 0.0.0.0/0 declared? Or just your corporate network address space? The `!N` in the traceroute means "network unreachable" and 169.254.249.5 appears to be the inside interface of the VPC's VPN hardware, rejecting the traffic due to lack of a route there. – Michael - sqlbot Jul 29 '15 at 22:25
  • @Michael-sqlbot we just have corporate network address space in the static ip prefixes. do you think we need to set static prefixes for 0.0.0.0/0 – Thomas Jul 30 '15 at 15:48
  • Yes, since in the scenario you are discussing, you want the tunnel to accept traffic for all Internet destinations. – Michael - sqlbot Jul 30 '15 at 18:50

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