VIRTUAL PRIVATE
NETWORKS (VPN)
BY
Rajesh Kumar Raj
Traditional Connectivity
[From Gartner Consulting]
What is VPN?
Virtual Private Network is a type of private network
that uses public telecommunication, such as the
Internet, instead of leased lines to communicate.
Became popular as more employees worked in
remote locations.
Terminologies to understand how VPNs work.
Private Networks
vs.
Virtual Private Networks
Employees can access the network (Intranet) from remote
locations.
Secured networks.
The Internet is used as the backbone for VPNs
Saves cost tremendously from reduction of equipment and
maintenance costs.
Scalability
Remote Access Virtual Private
Network
(From Gartner Consulting)
Brief Overview of How it Works
Two connections – one is made to the
Internet and the second is made to the
VPN.
Datagrams – contains data, destination
and source information.
Firewalls – VPNs allow authorized users
to pass through the firewalls.
Protocols – protocols create the VPN
tunnels.
Four Critical Functions
Authentication – validates that the data was
sent from the sender.
Access control – limiting unauthorized users
from accessing the network.
Confidentiality – preventing the data to be
read or copied as the data is being
transported.
Data Integrity – ensuring that the data has
not been altered
Encryption
Encryption -- is a method of “scrambling”
data before transmitting it onto the
Internet.
Public Key Encryption Technique
Digital signature – for authentication
Tunneling
A virtual point-to-point connection
made through a public network. It transports
encapsulated datagrams.
Original Datagram
Encrypted Inner Datagram
Datagram Header Outer Datagram Data Area
Data Encapsulation [From Comer]
Two types of end points:
Remote Access
Site-to-Site
Four Protocols used in VPN
PPTP -- Point-to-Point Tunneling Protocol
L2TP -- Layer 2 Tunneling Protocol
IPsec -- Internet Protocol Security
SOCKS – is not used as much as the
ones above
VPN Encapsulation of Packets
Types of Implementations
What does “implementation” mean in
VPNs?
3 types
Intranet – Within an organization
Extranet – Outside an organization
Remote Access – Employee to Business
Virtual Private Networks
(VPN)
Basic Architecture
Device Types
What it means
3 types
Hardware
Firewall
Software
Device Types: Hardware
Usually a VPN type of router
Pros Cons
• Highest network throughput • Cost
• Plug and Play • Lack of flexibility
• Dual-purpose
Device Types: Firewall
More security?
Pros Cons
• “Harden” Operating System • Still relatively costly
• Tri-purpose
• Cost-effective
Device Types: Software
Ideal for 2 end points not in same org.
Great when different firewalls
implemented
Pros Cons
• Flexible • Lack of efficiency
• Low relative cost • More labor
training required
• Lower
productivity; higher
labor costs
Advantages
VS.
Disadvantages
Advantages: Cost Savings
Eliminating the need for expensive long-distance
leased lines
Reducing the long-distance telephone charges for
remote access.
Transferring the support burden to the service
providers
Operational costs
Cisco VPN Savings Calculator
Advantages: Scalability
Flexibility of growth
Efficiency with broadband technology
Disadvantages
VPNs require an in-depth understanding of
public network security issues and proper
deployment of precautions
Availability and performance depends on factors
largely outside of their control
Immature standards
VPNs need to accommodate protocols other
than IP and existing internal network technology
Applications: Site-to-Site VPNs
Large-scale encryption between multiple fixed
sites such as remote offices and central offices
Network traffic is sent over the branch office
Internet connection
This saves the company hardware and
management expenses
Site-to-Site VPNs
Applications: Remote Access
Encrypted connections between mobile or
remote users and their corporate networks
Remote user can make a local call to an ISP, as
opposed to a long distance call to the corporate
remote access server.
Ideal for a telecommuter or mobile sales people.
VPN allows mobile workers & telecommuters to
take advantage of broadband connectivity.
i.e. DSL, Cable
Industries That May Use a VPN
Healthcare: enables the transferring of confidential patient information within the medical
facilities & health care provider
Manufacturing: allow suppliers to view inventory & allow clients to purchase online safely
Retail: able to securely transfer sales data or customer info between stores & the
headquarters
Banking/Financial: enables account information to be transferred safely within
departments & branches
General Business: communication between remote employees can be securely exchanged
Statistics From Gartner-
Consulting*
Re mote acce s s for
e mploye e s work ing out 90%
of ho me s
Re mote acce s s for
e mploye e s while 79%
trave ling
Percentages
Site -to-s ite conne ctivity
be twe e n office s 63%
Acce s s to ne twork for
bus ine s s 50%
partne rs /cus tome rs
0% 20% 40% 60% 80% 100%
% of Respondents
*Source: [Link]
Some Businesses using a VPN
CVS Pharmaceutical Corporation upgraded their
frame relay network to an IP VPN
ITW Foilmark secured remote location orders,
running reports, & internet/intranet communications
w/ a 168-bit encryption by switching to OpenReach
VPN
Bacardi & Co. Implemented a 21-country, 44-
location VPN
Where Do We See VPNs
Going in the Future?
VPNs are continually being enhanced.
Example: Equant NV
As the VPN market becomes larger, more
applications will be created along with
more VPN providers and new VPN types.
Networks are expected to converge to
create an integrated VPN
Improved protocols are expected, which
will also improve VPNs.
Pop Quiz!
Q.1
VPN stands for…
a) Virtual Public Network b) Virtual Private Network
d)
c) Virtual Protocol Network
Virtual Perimeter Network
Pop Quiz!
A.1
VPN stands for…
b) Virtual Private Network
VPN stands for "Virtual Private Network" or "Virtual Private Networking." A VPN is a
private network in the sense that it carries controlled information, protected by various
security mechanisms, between known parties. VPNs are only "virtually" private,
however, because this data actually travels over shared public networks instead of fully
dedicated private connections.
Pop Quiz!
Q.2
What are the acronyms for the 3 most common VPN
protocols?
Pop Quiz!
A.2
3 most common VPN protocols are…
• PPTP
• L2TP
• IPsec
PPTP, IPsec, and L2TP are three of today's most popular VPN tunneling protocols. Each
one of these is capable of supporting a secure VPN connection.
Pop Quiz!
Q.3
What does PPTP stand for?
Pop Quiz!
A.3
PPTP = Point-to-Point Tunneling Protocol !
Pop Quiz!
Q.4
What is the main benefit of VPNs compared to
dedicated networks utilizing frame relay, leased
lines, and traditional dial-up?
a) better network performance b) less downtime on average
c) reduced cost d) improved security
Pop Quiz!
A.4
The main benefit of VPNs is…
c) reduced cost
The main benefit of a VPN is the potential for significant cost savings compared to
traditional leased lines or dial up networking. These savings come with a certain amount
of risk, however, particularly when using the public Internet as the delivery mechanism
for VPN data.
Pop Quiz!
Q.5
In VPNs, the term "tunneling" refers to
b)
a) an optional feature
the encapsulation of packets inside packets of a differe
that
to create and maintain the virtual
increases network performance if it is turned on
circuit
c) the method a system d) a marketing strategy that involves
administrator uses selling VPN products for very low
to detect hackers on the network
prices in return for expensive service
contracts
Pop Quiz!
A.5
In VPNs, the term "tunneling" refers to…
b)
the encapsulation of packets inside packets of a
to create and maintain the virtual circuit