Load Balancing At Different Network Layers

Bit the Chipmunk, AWS Expert published on
4 min, 730 words

Hiya, it’s Bit the Chipmunk again! Today we’re diving into one of my favorite topics — load balancing — the art of keeping traffic happy, healthy, and evenly spread out across multiple servers.

Load balancing is all about distributing traffic to improve availability, scalability, and sometimes even security. But not all load balancers are created equal — each layer of the OSI model adds its own flavor of smarts.

Let’s scurry through the layers together 🐾


🌍 Layer 3: Network Layer Load Balancing (IP-Level Routing)

At Layer 3, load balancing happens at the IP packet level. The balancer doesn’t care about TCP ports or HTTP headers — just source and destination IP addresses.

🧠 How it works

  • Traffic is distributed using routing rules (for example, ECMP – Equal-Cost Multi-Path routing).
  • Each packet’s destination IP is mapped to one of several backend instances.
  • Often implemented in routers, gateways, or appliances that handle packet forwarding.

🧩 Characteristics

FeatureDescription
Protocol AwarenessIP-only (no awareness of TCP, HTTP, etc.)
Use CaseVery high throughput environments like VPN concentrators, NAT gateways, or data center routers
Health ChecksTypically done at the next layer (L4 or above)
PerformanceExtremely high — minimal inspection overhead
Example AWS ServiceGateway Load Balancer (GWLB) works at this layer for network appliance insertion

💡 Exam Scenario Clue

“The solution must distribute packets between multiple network firewalls without inspecting sessions or modifying traffic.” → Layer 3 / GWLB is the match.


⚙️ Layer 4: Transport Layer Load Balancing (TCP/UDP-Level)

Layer 4 is where load balancing starts to understand connections — TCP, UDP, and ports come into play.

🧠 How it works

  • Balancer listens on a specific port (like TCP 443).

  • Routes entire connections or flows to a target based on rules like:

    • 5-tuple (source/destination IP + port + protocol)
    • Hash-based distribution
    • Least-connections or round-robin algorithms

The balancer doesn’t care what’s inside the packets (no HTTP inspection), so it’s super fast.

🧩 Characteristics

FeatureDescription
Protocol AwarenessTCP, UDP
Use CaseScaling stateless app servers, database proxies, or gRPC backends
Health ChecksTCP or ICMP checks
PerformanceHigh — connection-level awareness but not content-level
Example AWS ServiceNetwork Load Balancer (NLB) operates here

💡 Exam Scenario Clue

“The application uses custom TCP-based protocols and needs to handle millions of requests per second with minimal latency.” → That’s Layer 4 load balancing.

Another clue:

“Clients connect via UDP for gaming or real-time streaming.” → Layer 4 again — HTTP balancers can’t handle raw UDP.


🧁 Layer 7: Application Layer Load Balancing (HTTP/HTTPS-Level)

Now we’re at Layer 7, where load balancers become application-aware. They understand URLs, headers, cookies, and session data — perfect for web applications.

🧠 How it works

  • Balancer terminates client connections (TLS offload).

  • Parses the request to apply smart routing rules, such as:

    • “Send /api/* requests to microservice A”
    • “Route images to servers with caching”
    • “Redirect HTTP → HTTPS”
  • Can add headers, rewrite URLs, and perform authentication checks.

🧩 Characteristics

FeatureDescription
Protocol AwarenessHTTP, HTTPS, WebSocket
Use CaseWeb front ends, REST APIs, content routing
Health ChecksApplication-level (HTTP 200 OK)
PerformanceSlightly lower — but flexible and smart
Example AWS ServiceApplication Load Balancer (ALB)

💡 Exam Scenario Clue

“Traffic must be routed based on the URL path or HTTP header.” → That’s Layer 7.

Or:

“The balancer must terminate TLS and perform user-based routing.” → Layer 7 — ALB or similar.


Layer Comparison at a Glance

LayerAwarenessTypical Use CasePerformanceExample AWS Service
3 – NetworkIP packetsAppliance load sharing (firewalls, IDS)⚡⚡⚡ FastestGWLB
4 – TransportTCP/UDP sessionsCustom protocols, extreme scale⚡⚡ Very fastNLB
7 – ApplicationHTTP/HTTPS contentWeb apps, microservices, path-based routing⚡ Smart but slowerALB

🧩 Realistic Exam Scenarios

ScenarioLikely LayerReasoning
Distribute traffic between third-party firewallsL3No connection tracking needed
Scale out database proxies (TCP-based)L4Works with non-HTTP protocols
Route users to /api vs /images endpointsL7Content-based routing
Offload TLS and add custom headersL7Application-aware capabilities
Support 10 million concurrent TCP connectionsL4Raw performance and minimal overhead
Insert network security appliances transparentlyL3GWLB-style design pattern

🧠 Bit’s Final Burrow Notes

When you see a question on the AWS exam:

  • If it mentions URLs, headers, or cookies → Layer 7
  • If it mentions TCP, UDP, or custom ports → Layer 4
  • If it mentions firewalls, inspection appliances, or transparent routing → Layer 3

Now you can tell the difference without gnawing on the cables 🐿️💻