Franz Lobo

SUMMARY

Companies are starting to connect to one another through virtual private networks (VPN). Because VPNs build a "tunnel" through that public system for your private data traffic, this is also known as tunneling. The Internet is not the only public network that can provide the long-distance part of the VPN connection. Big telecommunication companies have all sorts of public bandwidth available, so VPN seekers have some options. In spite of its attractiveness (reduce cost), VPNs present some potential roadblocks such as security, and shaky performance (evidenced by the competition for bandwidth by other people and companies.)

RESPONSE

I think this technology is still immature; however, it seems to offer great potential for companies doing business overseas. This may facilitate the expansion of corporate networks at a low cost, and fast. In addition, it may lower the technical barriers to entry in distant markets where for instance T1 lines are unavailable or unprofitable.

Unless VPNs incorporate the encryption required to secure the data from prying eyes and provide means to control bandwidth, this technology will fall short. Companies need to be careful not to be drawn only by reduced costs.

Slater, Dereck. (1999, July 15). What is a V.P.N? CIO Enterprise Magazine Online. Retrieved 3 September 1999 from http://www.cio.com/archive/enterprise/071599_curve.html