Many companies are creating their own VPN (virtual private network) to accommodate the needs of remote employees and distant offices.
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 companys private network to the remote site or employee. In this article, you will gain a fundamental understanding of VPNs, and learn about basic VPN components, technologies, tunnelling and security.

Image courtesy Cisco Systems, Inc.
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.
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
What features are needed in a well-designed VPN? It should incorporate:
- Security
- Reliability
- Scalability
- Network management
- Policy management
VPN solutions are often developed from equipment providers like Cisco or Netgear, and software providers like Microsoft.