Final answer:
For interconnecting multiple VPCs and on-premises networks, it is recommended to use AWS Transit Gateway to establish a central hub for a scalable and efficient network architecture.
Step-by-step explanation:
For a scenario involving multiple VPCs across various accounts that need to be interconnected, and also connected to on-premises networks through AWS Direct Connect, the most recommended solution is to use AWS Transit Gateway.
The AWS Transit Gateway acts as a cloud router, simplifying the network and offering a single point of management and connection. It provides a hub-and-spoke (star network) connection model, which is scalable and reduces the complexity involved with managing multiple connections. With Transit Gateway, you can connect VPCs, data centers, and remote offices to a central gateway, handling high volumes of traffic and routes.
Setting up individual VPC peering connections for many VPCs is complex and non-scalable. Establishing individual VPN connections for each VPC would not take advantage of the AWS Direct Connect's high-speed connectivity. Utilizing AWS Direct Connect for each VPC, while feasible, is costly and less efficient than going through a Transit Gateway.