What's a VPN?
Virtual private networks are secured private network connections, built on top of publicly-accessible infrastructure, such as the Internet or the public telephone network. VPNs typically employ some combination of encryption, digital certificates, strong user authentication and access control to provide security to the traffic they carry. They usually provide connectivity to many machines behind a gateway or firewall.

A typical VPN might have a main LAN at the corporate headquarters of a company, other LANs at remote offices or facilities and individual users connecting from out in the field.
Basically, a VPN is a private network that uses a public network (usually the Internet) to connect remote sites or users together. Instead of using a dedicated, real-world connection such as leased line, a VPN uses "virtual" connections routed through the Internet from the company's private network to the remote site or employee.
What Makes A VPN?
There are two common VPN types:
- Remote-access - Also called a virtual private dial-up network (VPDN), this is a user-to-LAN connection used by a company that has employees who need to connect to the private network from various remote locations. Typically, a corporation that wishes to set up a large remote-access VPN will outsource to an enterprise service provider (ESP). The ESP sets up a network access server (NAS) and provides the remote users with desktop client software for their computers. The telecommuters can then dial a toll-free number to reach the NAS and use their VPN client software to access the corporate network.
A good example of a company that needs a remote-access VPN would be a large firm with hundreds of sales people in the field. Remote-access VPNs permit secure, encrypted connections between a company's private network and remote users through a third-party service provider.
- Site-to-site - Through the use of dedicated equipment and large-scale encryption, a company can connect multiple fixed sites over a public network such as the Internet. Site-to-site VPNs can be either:
a) Intranet-based - If a company has one or more remote locations that they wish to join in a single private network, they can create an intranet VPN to connect LAN to LAN.
b) Extranet-based - When a company has a close relationship with another company (for example, a partner, supplier or customer), they can build an extranet VPN that connects LAN to LAN, and that allows all of the various companies to work in a shared environment.

Examples of the three types of VPN
A well-designed VPN can greatly benefit a company.
For example, it can:
- Extend geographic connectivity
- Improve security
- Reduce operational costs versus traditional WAN
- Reduce transit time and transportation costs for remote users
- Improve productivity
- Simplify network topology
- Provide global networking opportunities
- Provide telecommuter support
- Provide broadband networking compatibility
- Provide faster ROI (return on investment) than traditional WAN
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