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Micro-segmentation involves dividing a VPC into many small, isolated subnets, each hosting a limited number of resources. This approach can significantly improve resources segregation and reduce the attack surface. If a resource in one subnet is compromised, the impact is contained within that subnet and does not affect resources in other subnets. This is a fundamental principle of the zero-trust approach, where each micro-segment of the network is considered a separate trust zone and is secured accordingly. It is a stark contrast to traditional flat network designs where attackers can easily move laterally and jeopardize other systems once they have infiltrated the network.