There was a time when accessing your company's data network from a remote location, or having two or more offices connected to the same private network, was reserved only for companies with deep pockets who could afford to lease private lines from the phone company.

So many businesses of all sizes are now relying on the use of Internet-based Virtual Private Networks, also known as VPNs.

What is a VPN?

A VPN is a software solution that, theoretically, allows your company to send and receive data securely over the Internet. Because the Internet reaches nearly all corners of the globe, an Internet-based VPN provides great coverage.

How do VPNs work?

Through a combination of hardware and software, the data is first encrypted before it is sent out over the Internet, and then decrypted when it reaches its final destination.

Who needs a VPN?

Even small companies often have offices in multiple locations. In such cases, having all your offices able to securely access a central data network is ideal, particularly for transfer of sensitive data.

A VPN is also ideal for traveling employees who can use their laptops and hotel phone connection to access their company's network, or for full-time employees that may work at home at night.

How do I get a VPN?

You can set up a VPN by purchasing a VPN software package from a software vendor that specializes in Internet security. A bonus is that VPN software packages often include firewall software for added protection.

You'll also need to purchase a server ($3000-5000) to run your VPN software, and possibly some networking cards ($70-100). Software prices vary a great deal depending on your service level needs, but you can expect an average of $500 for your server software, and around $70 for each client (i.e., desktop PC or notebook computer) you add to your network.

Your software vendor should also provide, or at least refer you to, a consultant that can help you understand the hardware requirements for running a VPN. If you're going to set up your own VPN, though, it's best if you have at least one full time IT person on staff. Like any network, a VPN will require regular attention from an IT expert.

An alternative, albeit more expensive, way to set up a VPN is to outsource the operations to a telecommunications service provider. A VPN service provider is paid to take care of the details so you don't have to - they will implement the VPN and provide around-the-clock management and monitoring from an off-site network center.

Prices will vary by your company size but a typical software package generally starts at around $3500, and the annual service subscription fees start at around $800.

See also:
   IT Consulting Buyer's Guide
   Server Buyer's Guide
   Related article: Protect your network with a firewall
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   privacy policy
   Related article: Protect your business against computer
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