A Virtual Private Network, or VPN for short, enables international companies with offices all around the world to feel like they’re in the same building. Before the Internet, there were LANs (Local Area Networks) and WANs (Wide Area Networks), the latter of which were deployed by major corporations to put their computers spread across the wide area — different parts of the world — into a single system or network.
Then the Internet came along and made WANs obsolete. No longer companies had to make their own infrastructure to move data from one part of the world to the other — and this often included expensive cable and satellite connections — instead, they started relying on the Internet to move data through the shared infrastructure. Naturally, all the data that “traveled” through the Internet was (and still is) encrypted so that only the sender and receiver could “understand” it — or so that only their computers (and networks) could decrypt it.
Because of its low cost — compared to building and then maintaining your own network — VPNs were an instant hit among the multinationals which saw it as a major cost saver that has little to no downsides.
Who invented VPN?
The idea of a VPN is as long as the story of the Internet and before that – ArpaNet. However, the first modern VPN was created by Microsoft, specifically its employee Gurdeep Singh-Pall, who created the Peer to Peer Tunneling Protocol (PPTP) in 1996. Three years later, the first specification was published and the rest is, as they say, history.
Microsoft pitched the idea to its enterprise clients which, unsurprisingly, liked it a lot and started embracing it. Before you know, a VPN as we know today was included in Windows and other platforms.
Today, most modern devices support VPN connections and this includes both computers as well as phones and tablets.
How is VPN set up in an organization?
A VPN is created by establishing a virtual point-to-point connection through the use of dedicated circuits or with tunneling protocols over existing networks. Generally speaking, a VPN capability is enabled on a server inside the organization to allow its employees to connect to the local network (inside the main offices) from other locations. At the same time, it also enables other off-main-site networks to “feel at home.”
That is a typical arrangement that relies on the server software which, in most cases, is running on Windows or Linux.
That, however, isn’t the end of the story with many organizations today also using Internet-based services (so-called Software as a Service or SaaS solutions) that further complicate the issue.
So today, organizations use VPNs to control access to their own network as well as to limit access to SaaS solutions they use. For instance, they could set a SaaS software to only allow connections from previously defined IP addresses that are owned and/or operated by the company.
A good example would be using the cloud-based version of Microsoft Word that is available as part of the Office 365 suite (now called Microsoft 365) and you need to upload some image from the company’s server. Now, imagine you’re not in the office. In this case, the company could set a rule that would allow access to both the server and Microsoft 365 from its internal network. In other words, you will have to connect to the VPN before the task.
Corporations need a VPN
As we have mentioned above, before VPN, multinational corporations built their own networks in order to connect their offices around the world. But building WANs is expensive and not all companies could afford it, despite the obvious benefits of connecting the global workforce. And the cost didn’t end with the network build-out — someone also had to maintain that infrastructure to make sure all switches and routers work round the clock.
With the introduction of a VPN, the cost of connecting multiple offices went dramatically down; companies got the same level of security at a fraction of the cost, piggybacking on the existing (public) infrastructure to achieve the same thing. And that “same thing” includes extending the company’s corporate network with the help of the Internet, making communication and file-sharing between different offices possible.
As far as employees are concerned, a VPN provided them with round-the-clock access to important files remotely — all while minimizing the risk of unauthorized users stealing sensitive data.
The security, which is always on top of mind in the corporate world, was (and still is) enabled by powerful encryption that makes snooping into web traffic virtually impossible.
Furthermore, with no servers on premise to deal with, even more businesses joined the trend.
Key benefits of a VPN for corporate customers
We have already mentioned some of the benefits above, but they are worth repeating, nonetheless. Specifically, we think these are the 3 key benefits a VPN brings to any corporation:
1. Connection
This one’s rather obvious. A VPN makes connecting multiple offices, factories and other corporate spaces easier and more affordable. Instead of building an infrastructure from the ground up — which is the process that includes a ton of cables, routers, switches and possibly even satellite connections — a VPN relies on the Internet to route all the traffic coming to and from every point in the network. This is not only more efficient but also way more affordable. Otherwise, with limited resources, corporations would have to pick and choose which offices to connect and which to leave off-network.
2. Remote Access
It’s not just offices — i.e. physical locations — that are connected with a VPN. The solution also enables employees to keep working while not in the office. They connect to a VPN and suddenly, as far as the corporate network is concerned, they are in the office with all the privileges to access the company’s files and databases, as well as to collaborate with their colleagues. This feature comes in especially handy when employees are traveling to other countries and they still need to be able to access the company’s (digital) resources.
3. Security
Modern VPN software comes with nearly unbreakable encryption that also happens to be used by intelligence agencies of the world. Yes, we’re talking about the likes of NSA, CIA and so on. Because the data “travels” through the public infrastructure (Internet), it is encrypted so that only the sender and receiver know what’s it all about. Virtually all VPN solutions offered today support strong encryption that is supported by protocols such as OpenVPN and IPSec.
From major corporations to small businesses
The further advent of VPN services has seen the technology moving from big players to smaller companies. Today, many small businesses use VPNs to keep their employees “connected” while they’re not in the office — all while enabling them to “act” like they are sitting at their desks.
In addition, a VPN also makes all communication between employees and the main office more secure. It does that by encrypting all traffic flowing to and from employees’ devices to the company’s servers and other services (SaaS) the employee (and the company) may be using.
This extra security is especially important when employees are traveling to other countries where they may have to rely on public Wi-Fi hotspots which is a potential security hazard. You see, when a malicious and tech-savvy actor is using the same wireless connection as you do, he/she may be able to snoop into your web traffic, potentially obtaining classified information. This, so-called man-in-the-middle attack is easily prevented with the use of the VPN software.
Individuals are joining the ride, as well
Although this article is about corporate use of VPN services, it is worth mentioning that today regular users are also relying on VPN services, which not only make users’ devices (not just computers, but also phones and tablets) more secure – but also enable bypassing of various restrictions.
For instance, you may not be able to access the Internet in its entirety when visiting high-censorship countries like China. There, high-tech censors make sure only the “approved” websites are available to access.
Similarly, due to the way content rights are bought and sold on today’s (global) market, some video streaming services are limiting access to parts of their catalog in certain countries. To make things worse, this also includes users who may be traveling abroad and suddenly they are not able to watch their favorite show like they’re used to.
Again, a VPN could help out by “tricking” the video streaming services’ servers into thinking that you are in one location — whereas in reality, you may be located on the opposite side of the world.
Finally, after the Facebook-Cambridge Analytica data scandal was revealed – many users took their privacy more seriously, turning to VPNs to keep their web whereabouts under the radar.
The future of VPN services
With security remaining one of the top issues for corporate executives, the use of VPNs is projected to skyrocket in the years to come. It’s not just us who’s saying this, various research organizations predict the continued growth of the industry, as well. As a reference point, between 2016 and 2018, VPNs experienced a growth of 165 percent. That’s massive and again, that’s just a start.
Whether we’re talking about VPNs that corporations install on their servers or third-party solutions — some of which also happen to be enterprise-friendly — the future looks bright for everyone in the industry.
Nevertheless, we expect that as more corporations turn to web-based (SaaS) solutions for various aspects of their businesses, it will be third-party VPNs that will grow more — both among the consumers and businesses. Simply put, they are easier to manage, offering an attractive and scalable model that involves pricing on a per employee per month basis which — I imagine — could go drastically down when the company has more than a thousand (or few thousand) employees. Also, these companies are better suited to tackle modern security challenges — their entire business depends on it.