How VPN Works and The Technology Behind It
Business functionality has expanded greatly in the last two decades, and it has increased even a small company’s reach into the global market. Many companies now have branch offices or affiliates across the country and across borders. Communication is critical to collaborative efforts, negotiations, and procurement.
A reliable and secure method of expanding communication into a larger geographic area is an absolute necessity. Many business owners are realizing that a Virtual Private Network (VPN) has several benefits for their business .
How Does A VPN Work?
While many companies have intranets, these private network sites only accommodate the usage needs of the specific company’s employees at a single location. Today’s technology is continually evolving and this makes it possible for a company to create its own VPN to service the needs of domestic branches, global offices, remote employees, and sales associates.
There are two main VPN types:
Remote Access VPN
Sometimes referred to as a VPDN (Virtual Private Dial-Up Network), this type of network promotes a user-to-LAN (Local Area Network) connection. When a company has several offices and employees from the various locations need to connect to the private network, this solution works well.
Through their ISP (Internet Service Provider), a company sets up a remote-access VPN with dial-up capabilities and provides a 1-800 access number to the Internet for telecommuting employees to access the company’s secure and encrypted network. Insurance companies and nation-wide real estate brokers are just two examples of the many businesses that benefit from this type of VPN.
With dedicated equipment, multiple sites can be connected via the Internet. A local connection from each site is encrypted and connected to the same public network. Companies can experience substantial savings by eliminating the need for private leased lines. By using a site-to-site set-up, you can break the network down into intranets or extranets.
- Site-to-site VPN intranet is built to communicate between offices of the same company.
- Site-to-site VPN extranet is built to communicate between the company and a partner or customer.
How A Company Benefits From A Well-Planned VPN
- Can provide global connectivity
- Significantly lower operation costs than a WAN (Wide Area Network)
- Increases productivity
- Offers greater support for telecommuters
- Can reduce traveling and associated expenses
- Simplifies the topological structure of a network
- Faster realization of ROI (Return On Investment)
A Well-Designed VPN Contains Several Critical Features
- Encrypted security
- Network management functions
- A strong policy management
What Are The Most Common Encryption Protocols?
Ipsec – Internet Protocol Security Protocol (IPsec) – Greatly enhanced security features include authentication and encryption algorithms.
PPTP/MPPE – Point-to-Point Tunneling Protocol/Microsoft Point-to-Point Encryption – This combination provides solid encryption support for multi-protocol VPNs.
L2TP/Ipsec – Layer 2 Tunneling Protocol – This is the security for the Ipsec protocol.
Virtual private networks provide greater security and dependability for businesses of all sizes. VPNs are cost effective, and the strong security aspect builds confidence with the customer base. If you have been considering a VPN, it is a wise and secure solution for security across your networks.