February 24, 1997, Volume 14, Number 8
Technology Update

Title

How it Works

Network managers are becoming increasingly interested in the idea of using a public network such as the Internet in place of private lines to transport internal corporate data such as intranet documents, groupware communications and E-mail.

Quite simply, this type of virtual private networking (VPN) provides a relatively inexpensive way to connect telecommuters, mobile workers and remote sites to a home office LAN.

By using the Internet to transport data, companies can save up to 50% of the cost of operating a traditional leased private network, according to a 1996 U.S. computer study commissioned by Sun Microsystems, Inc.

While interest in VPN is growing, actual deployment is low. This is because VPN technologies are relatively immature, and many network managers don't understand how these networks should work.

Security is first and foremost among the important design issues for VPN. Private data that is transmitted over the Internet must be protected in order to keep it from being interfered with or intercepted.

Three types of data security come into play for VPN: encryption, which is the function of scrambling data so only the intended receiver can read it; authentication, which is the function of positively identifying the sender to the receiver; and integrity, which is the function of ensuring the data has not been changed in transit. Without all three security functions, a VPN solution is incomplete.

A key to VPN

It is impossible to understand VPN security without discussing encryption keys and their impact on a VPN's growth potential. To understand encryption, picture Person A feeding a private message for Person B into a scrambling machine purchased off a store shelf. Because anyone can buy a similar scrambler, simply feeding the private message into the scrambler won't provide any real security. However, if the private message is combined with a predetermined shared secret code that only the two parties know, then the message can be scrambled by Person A and only read by Person B.