A Virtual Private Network (VPN) is one of the hottest and most talked about methods of data transmission available today. A VPN is based upon sending data across a public network or the Internet; Data is kept secure by some method of encryption and encapsulation. The physical interface for a user to a VPN can vary in speed from a simple analog line to a high-speed digital connection.

There are two types of VPN service:

  1. Un-Managed VPNs refer to a simple local connection to a public network combined with some type of VPN Access Device. These VPN Access Devices can be a piece of hardware or software located at the customer's end of that Internet connection. There are a number of VPN hardware and software products available on the market, each one providing it's own unique type of solution. Un-Managed VPNs fall completely upon the customer to design, implement and manage: The Internet Service Provider (ISP) or carrier treats the data being sent as standard IP-only traffic to the Internet.
  2. Managed VPNs are a much more robust offering from a carrier. The exact benefits and components of this service will vary from carrier to carrier, but it typically involves the provider managing everything from the router out through the connection to the public network. Detailed usage reporting and monitoring is typically delivered on a regular basis and available for analysis to adjust the VPN service to maximum customer benefit. The rest of this section will define the physical architecture and components of Managed VPN service and detail how this service is priced.

A Virtual Private Network is one of the most difficult types of networks to design and implement because of the numerous components and options available. With the customer sending data over the inherently unsecured public network, it is crucial that the VPN be implemented properly or all of the organization's data may be compromised. A VPN can be used to connect any number of users from a single remote worker with a laptop and analog line to a large corporate office with hundreds of simultaneous users.

There are three main components to a Virtual Private Network:

  1. Connection - Every user within a VPN must have some type of connection to the public network or Internet. As with any Internet-based service, performance will always be improved with a faster and more reliable connection.
  2. Authentication - It is crucial for everyone involved to determine exactly who is on the other end of the VPN. There are many different methods to authenticate users to a session or network. Proper authentication will keep unauthorized or unwanted users from disrupting a network.
  3. Encryption - This is the key to ensuring the privacy of the information being sent. Again, there are a number of different encryption techniques, obviously the higher the level of encryption, the less likely the data is to being compromised should someone intercept it. As encryption and encapsulation is a fairly intensive process, the encryption device should be able to quickly handle the traffic to avoid becoming a bottleneck within the network.

To make a connection across a VPN, the VPN Access Device at the sending location must first contact the VPN Access Device at the receiving site. The sending location must also authenticate the other location and the two devices form a temporary sending path, referred to as a "tunnel". After the two have agreed upon an encryption technique, the sending device encrypts the data and encapsulates it into an IP packet. The data is sent through that tunnel, over the public network, where the receiving device reverses the process; stripping the IP information, decrypts the contents and forwards the sent data to the appropriate user at that site.

Much like Frame Relay, the local telephone company is typically used to provide the physical connection to the ISP or chosen carrier's Point of Presence (POP). A dedicated connection is not required for every site using the VPN, as a user may access the network via a wireless technology, but there does need to be some type of connection to the public network. Many new access technologies, such as ISDN or DSL, are being praised as low-cost, high-speed alternatives to traditional local connections to a carrier's network. Connections to sites within a VPN can be of varying bandwidth, thus allowing companies to save on unnecessary monthly access costs.

In addition to the connection to the public network, there must also be some form of added security to create a "true" VPN. These added levels of security can be performed at either end of the public network connection. At the customer's site, there may be some type of VPN access device; as explained before, these devices can be hardware or software-based. Hardware-based VPN access devices are typically certain security features within a router or FRAD, but can also be stand-alone components. Stand-alone VPN devices, both hardware and software-based, are usually more robust with features and management. Most carriers current VPN offerings include the installation and remote management of this type of equipment at a customer's site.

Some carriers are now offering a "Network-based" VPN service. With this type of service, the standard connection equipment (router and CSU/DSU) is still installed at a customer's site, but the added security is implemented by the provider somewhere within their network. This type of arrangement makes the monitoring and management of VPN services that much easier for the carrier. Upgrading and repairing VPN equipment is much easier with everything in one central location. Configuration and changes can also be made rather quickly and easily.

The monthly cost of a Managed VPN service is dependent upon a number of factors and will vary by provider, but the access portion is figured the same as any Internet connection. With a dial-up line, there are monthly charges for having the line in addition to usage. A dedicated connection, however, is priced just like a Leased Line, in that the cost of an LDC is based primarily upon bandwidth and physical distance (mileage) from the long distance carrier's POP. In addition to the physical connection, there is typically a monthly fee for accessing to the provider's network (this may or may not be usage-based).

The additional pricing for Managed VPN service, again varies by carrier, but is typically a set monthly charge per site depending upon the equipment and additional services. These contracts will also vary upon the type of service and length of commitment (term) of contract with the carrier. As always, any portion of the circuit cost may vary from month-to-month, which is exactly why our quotes are only good for 30 days. We will always make available any current discount or promotion to give you the best prices available from each carrier at that time.

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