What is a VPN and Why Should My Business Know About it

What is a Virtual Private Network?
Commonly known as a VPN and defined differently by different entities, it is a group of two or more computer systems, typically connected to a private network (a network built and maintained by an organization solely for its own use) with limited public-network access, that communicates “securely” over a public network, such as the Internet. VPNs may exist between an individual machine and a private network (client-to-server) or a remote LAN and a private network (server-to-server). 

What are the three elements of the VPN?

• Remote user identity authentication
• Secure private transmission of data (avoiding unauthorized listeners)
• Verification of unadulterated data transmission

Security features differ from product to product, but most security experts agree that VPNs include encryption, strong authentication of remote users or hosts, and mechanisms for hiding or masking information about the private network topology from potential attackers on the public network.

Another way to look it would be if two people (remote sites) were speaking in an unknown language in a public place (in this case, the Internet).

There are plenty of people that can hear you speaking (hackers), but they do not know what you are saying. By speaking the “language” both people would “encrypt” and “decrypt” the data into relevant information and understand the other person. Similarly, VPNs provide the unknown “language” that is decipherable between two parties, but no one else knows what is being said.

What are the trends driving VPNs?
A convergence of business, social, and technology trends are driving the dispersion of today’s enterprise into a distributed workplace:

• Rapid proliferation of powerful, affordable PCs and other small office technologies.
• Emergence of the Internet as the global data communications network for linking geographically dispersed locations.
• Demand by employees for flexible work arrangements in response to growing commute times and family needs.
• Drive for improved productivity and reduced costs by companies.
• Need for recruiting and retaining talent located outside the confines of the local geographical area.
• Explosive availability of affordable, broadband Internet connections (DSL, cable and wireless).

What are the advantages of using VPNs?

• Cost Savings – By leveraging third party networks, with VPN, organizations no longer have to use expensive leased or frame relay lines and are able to connect remote users to their corporate networks via a local Internet service provider (ISP) instead of via expensive 800-number or long distance calls to resource-consuming modem banks
• Security – VPNs provide the highest level of security using advanced encryption and authentication protocols that protect data from unauthorized access.
  Scalability – VPNs allow corporations to utilize remote access infrastructure within ISPs. Therefore, corporations are able to add a virtually unlimited amount of capacity without adding significant infrastructure.
• Compatibility with Broadband Technology – VPNs allow mobile workers, telecommuters and day extenders to take advantage of high-speed, broadband connectivity, such as DSL and Cable, when gaining access to their corporate networks, providing workers significant flexibility and efficiency.