VPN
A VPN (Virtual Private Network) is an encrypted network connection that enables secure data exchange over public networks – as if you were directly on the local company network.
With remote work, cloud services and growing cyber threats, a VPN is a basic security measure for companies of any size. It protects sensitive data in transit, lets staff access company networks securely from anywhere and shields communication from unauthorised access.
What is VPN?
A VPN (Virtual Private Network) creates an encrypted tunnel between the user’s device and a VPN server. All data through this tunnel is encrypted and protected from eavesdropping. Types include: remote access VPN (staff connect from outside to the company network), site-to-site VPN (two sites permanently connected), and cloud VPN (secure access to cloud resources). Modern protocols like WireGuard, OpenVPN and IPSec offer strong encryption and good performance. In companies VPNs are often combined with zero-trust, where each access is authenticated individually in addition to the VPN.
How does VPN work?
The VPN client on the user’s device establishes an encrypted connection to the VPN server (the tunnel). All of the user’s internet traffic is sent through this tunnel. To an outsider only the encrypted connection to the VPN server is visible – not which sites are visited or what data is sent. The VPN server decrypts the data and forwards it to the destination. With corporate VPNs the user gets an IP from the company network and can access internal resources as if on site.
Practical Examples
Remote work: An employee works from home and accesses the company network, internal databases and intranet applications securely via VPN.
Site connectivity: A company with offices in Berlin, Munich and Vienna connects all sites with a site-to-site VPN into one network.
Secure cloud access: A DevOps team uses a cloud VPN to reach development and staging servers in AWS securely without exposing them to the internet.
Travelling staff: Sales use VPN on hotel Wi-Fi to access CRM and email without risk of man-in-the-middle attacks.
Partner access: A supplier gets VPN access to the customer’s ordering system – encrypted and limited to defined resources.
Typical Use Cases
Remote work: Secure connection from home or elsewhere to the company network
Site connectivity: Permanent encrypted link between offices
Cloud security: Secure access to cloud servers and services without public exposure
Compliance: Meeting data protection requirements (e.g. GDPR) when data is sent over untrusted networks
Supplier integration: Controlled access for external partners to defined systems
Advantages and Disadvantages
Advantages
- Strong encryption protects data from eavesdropping and tampering
- Secure remote access to internal resources from anywhere
- Cost-effective: VPN can replace expensive leased lines between sites
- Privacy: IP address and browsing behaviour are hidden from third parties
- Easy to scale: New users or sites can be added quickly
Disadvantages
- Performance: Encryption and routing via the VPN server can reduce speed
- Not a silver bullet: VPN protects the transport but not against malware, phishing or compromised devices
- Management: Certificates, access rights and VPN clients must be administered
- Single point of failure: If the VPN server fails, remote access is down
Frequently Asked Questions about VPN
Which VPN protocol is best?
Is a VPN enough for IT security?
What is the difference between business VPN and consumer VPN?
Related Terms
Want to use VPN in your project?
We are happy to advise you on VPN and find the optimal solution for your requirements. Benefit from our experience across over 200 projects.