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Hello Hayden,
Thanks for sharing your thoughts on this item. Yes, the HSM hardware from where keys are generated does not reside in customer VPCs; customers just use software provided by AWS to interface with them. I understand that the last part of the scenario gives the wrong impression of HSMs being hosted in a customer VPC so a more appropriate statement would be along the lines of “managing HSM within their VPC”. We’ll tweak this item to make it more technically correct.
Let me know if you have further questions.
Regards,
Carlo @ Tutorials Dojo