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VIRTUAL PRIVATE
NETWORKS (VPN)
Basics

Traditional Connectivity
[From Gartner Consulting]

What is VPN?
 Virtual Private Network is a type of private
network that uses public telecommunication,
such as the Internet, instead of leased lines to
communicate.
 Became popular as more employees worked
in remote locations.
 Terminologies to understand how VPNs work.

Private Networks
vs. Virtual Private Networks
 Employees can access the network (Intranet)
from remote locations.
 Secured networks.
 The Internet is used as the backbone for VPNs
 Saves cost tremendously from reduction of
equipment and maintenance costs.
 Scalability

Remote Access Virtual Private
Network
(From Gartner Consulting)

Brief Overview of How it Works
 Two connections – one is made to the
Internet and the second is made to the
VPN.
 Datagrams – contains data, destination
and source information.
 Firewalls – VPNs allow authorized users to
pass through the firewalls.
 Protocols – protocols create the VPN
tunnels.

Four Critical Functions
Authentication – validates that the data
was sent from the sender.
Access control – limiting unauthorized
users from accessing the network.
Confidentiality – preventing the data to be
read or copied as the data is being
transported.
Data Integrity – ensuring that the data has
not been altered

Encryption
Encryption -- is a method of “scrambling”
data before transmitting it onto the
Internet.
Public Key Encryption Technique
Digital signature – for authentication

Tunneling
A virtual point-to-point connection
made through a public network. It
transports
encapsulated datagrams.
Encrypted Inner Datagram
Datagram Header Outer Datagram Data Area
Original Datagram
Data Encapsulation [From Comer]
Two types of end points:
 Remote Access
 Site-to-Site

Four Protocols used in VPN
PPTP -- Point-to-Point Tunneling
Protocol
L2TP -- Layer 2 Tunneling Protocol
IPsec -- Internet Protocol Security
SOCKS – is not used as much as the
ones above

Types of Implementations
What does “implementation” mean
in VPNs?
3 types
 Intranet – Within an organization
 Extranet – Outside an organization
 Remote Access – Employee to
Business

Virtual Private Networks (VPN)
Basic Architecture

Device Types
What it means
3 types
 Hardware
 Firewall
 Software

Device Types: Hardware
Usually a VPN type of router
Pros
• Highest network throughput
• Plug and Play
• Dual-purpose
Cons
• Cost
• Lack of flexibility

Device Types: Firewall
More security?
Pros
• “Harden” Operating System
• Tri-purpose
• Cost-effective
Cons
• Still relatively costly

Device Types: Software
Ideal for 2 end points not in same org.
Great when different firewalls
implemented
Pros
• Flexible
• Low relative cost
Cons
• Lack of efficiency
• More labor
training required
• Lower
productivity; higher
labor costs

Advantages: Cost Savings
Eliminating the need for expensive long-
distance leased lines
Reducing the long-distance telephone
charges for remote access.
Transferring the support burden to the
service providers
Operational costs

Advantages: Scalability
Flexibility of growth
Efficiency with broadband technology

Disadvantages
 VPNs require an in-depth understanding of
public network security issues and proper
deployment of precautions
 Availability and performance depends on
factors largely outside of their control
 Immature standards
 VPNs need to accommodate protocols other
than IP and existing internal network
technology

Applications: Site-to-Site VPNs
Large-scale encryption between
multiple fixed sites such as remote
offices and central offices
Network traffic is sent over the branch
office Internet connection
This saves the company hardware and
management expenses

Applications: Remote Access
 Encrypted connections between mobile or
remote users and their corporate networks
 Remote user can make a local call to an ISP,
as opposed to a long distance call to the
corporate remote access server.
 Ideal for a telecommuter or mobile sales
people.
 VPN allows mobile workers & telecommuters
to take advantage of broadband connectivity.
i.e. DSL, Cable

Industries That May Use a VPN
 Healthcare: enables the transferring of confidential patient
information within the medical facilities & health care
provider
 Manufacturing: allow suppliers to view inventory & allow
clients to purchase online safely
 Retail: able to securely transfer sales data or customer
info between stores & the headquarters
 Banking/Financial: enables account information to be
transferred safely within departments & branches
 General Business: communication between remote
employees can be securely exchanged

Where Do We See VPNs
Going in the Future?
 VPNs are continually being enhanced.
Example: Equant NV
 As the VPN market becomes larger, more
applications will be created along with more
VPN providers and new VPN types.
 Networks are expected to converge to
create an integrated VPN
 Improved protocols are expected, which will
also improve VPNs.
 Managed Security Service providers

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