A Virtual Private Network (VPN) allows secure connections over public telecommunications networks like the internet, enabling remote access to private intranets while reducing costs and enhancing flexibility. It operates on principles of authentication, access control, confidentiality, and data integrity, utilizing various protocols and encryption methods. The document discusses types of VPN implementations and applications across industries, along with their advantages and disadvantages.

1. VIRTUAL PRIVATE
VIRTUAL PRIVATE
NETWORKS (VPN)
NETWORKS (VPN)

2. Traditional Connectivity
Traditional Connectivity

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

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

5. Remote Access Virtual Private
Remote Access Virtual Private
Network
Network
(From Gartner Consulting)

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

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

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

9. Tunneling
Tunneling
A virtual point-to-point connection
A virtual point-to-point connection
made through a public network. It transports
made through a public network. It transports
encapsulated datagrams.
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

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

11. VPN Encapsulation of Packets
VPN Encapsulation of Packets

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

13. Virtual Private Networks (VPN)
Basic Architecture

14. Device Types
Device Types
 What it means
What it means
 3 types
3 types
 Hardware
Hardware
 Firewall
Firewall
 Software
Software

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

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

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

18. Advantages
Advantages
VS.
VS.
Disadvantages
Disadvantages

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

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

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

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

23. Site-to-Site VPNs
Site-to-Site VPNs

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

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

26. Statistics*
Statistics*
50%
63%
79%
90%
0% 20% 40% 60% 80% 100%
Access to network for
business
partners/customers
Site-to-site connectivity
between offices
Remote access for
employees while
traveling
Remote access for
employees working out
of homes
% of Respondents
Percentages
*Source: www.cisco.com

27. Some Businesses using a VPN
Some Businesses using a VPN
CVS Pharmaceutical Corporation upgraded their
CVS Pharmaceutical Corporation upgraded their
frame relay network to an IP VPN
frame relay network to an IP VPN
ITW Foilmark secured remote location orders,
ITW Foilmark secured remote location orders,
running reports, & internet/intranet
running reports, & internet/intranet
communications w/ a 168-bit encryption by
communications w/ a 168-bit encryption by
switching to OpenReach VPN
switching to OpenReach VPN
Bacardi & Co. Implemented a 21-country, 44-
Bacardi & Co. Implemented a 21-country, 44-
location VPN
location VPN

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