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VPN (Virtual Private
Networks)
The world has changed a lot in the last couple of decades.
Instead of simply dealing with local or regional concerns, many businesses now have to
think about global markets and logistics. Many companies have facilities spread out across
the country or around the world, and there is one thing that all of them need: A way to
maintain fast, secure and reliable communications wherever their offices are.
Until fairly recently, this has meant the use of leased lines to maintain a wide
area network (WAN). Leased lines, ranging from ISDN (integrated services digital
network, 128 Kbps) to OC3 (Optical Carrier-3, 155 Mbps) fiber, provided a company with a
way to expand its private network beyond its immediate geographic area. A WAN had obvious
advantages over a public network like the Internet when it came to reliability,
performance and security. But maintaining a WAN, particularly when using leased lines, can
become quite expensive and often rises in cost as the distance between the offices
increases.
As the popularity of the Internet grew, businesses turned to it as a means of extending
their own networks. First came intranets, which are password-protected sites
designed for use only by company employees. Now, many companies are creating their own VPN
(virtual private network) to accommodate the needs of remote employees and distant
offices.

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.
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 company's private network to the remote
site or employee.
What Makes a VPN?
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
There are mainly two types of VPN.
Remote-Access VPN
There are two common types of VPN. Remote-access, also called a virtual private
dial-up network (VPDN), is a user-to-LAN connection used by a company that has
employees who need to connect to the private network from various remote locations.
Typically, a corporation that wishes to set up a large remote-access VPN will outsource to
an enterprise service provider (ESP). The ESP sets up a network access
server (NAS) and provides the remote users with desktop client software for
their computers. The telecommuters can then dial a toll-free number to reach the NAS and
use their VPN client software to access the corporate network.
A good example of a company that needs a remote-access VPN would be a large firm with
hundreds of sales people in the field. Remote-access VPNs permit secure, encrypted
connections between a company's private network and remote users through a third-party
service provider.
Site-to-Site VPN
Through the use of dedicated equipment and large-scale encryption, a company can connect
multiple fixed sites over a public network such as the Internet. Site-to-site VPNs can be
one of two types:
- Intranet-based - If a company has one or more remote locations that they wish to
join in a single private network, they can create an intranet VPN to connect LAN to LAN.
- Extranet-based - When a company has a close relationship with another company
(for example, a partner, supplier or customer), they can build an extranet VPN that
connects LAN to LAN, and that allows all of the various companies to work in a shared
environment.
VPN Security: Firewalls
A well-designed VPN uses several methods for keeping your connection and data secure:
- Firewalls
- Encryption
- IPSec
- AAA Server
In the following sections, we'll discuss each of these security methods. We'll start
with the firewall.
A firewall provides a strong barrier between your private network and the Internet. You
can set firewalls to restrict the number of open ports, what type of packets are passed
through and which protocols are allowed through. Some VPN products, such as Cisco's 1700
routers, can be upgraded to include firewall capabilities by running the appropriate Cisco
IOS on them. You should already have a good firewall in place before you implement a VPN,
but a firewall can also be used to terminate the VPN sessions.
VPN Security: Encryption
Encryption is the process of taking all the data that one computer is sending to another
and encoding it into a form that only the other computer will be able to decode. Most
computer encryption systems belong in one of two categories:
- Symmetric-key encryption
- Public-key encryption
VPN Technologies
Depending on the type of VPN (remote-access or site-to-site), you will need to put in
place certain components to build your VPN. These might include:
- Desktop software client for each remote user
- Dedicated hardware such as a VPN concentrator or secure PIX firewall
- Dedicated VPN server for dial-up services
- NAS (network access server) used by service provider for remote-user VPN access
- VPN network and policy-management center
Because there is no widely accepted standard for implementing a VPN, many companies
have developed turn-key solutions on their own. In the next few sections, we'll discuss
some of the solutions offered by Cisco, one of the most prevelant networking technology
companies.
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