VPNs are a powerful solution for both individual use, and adoption by businesses as part of their security suite.
In this insight we will explain how a VPN works, individual and business use cases, and how a VPN can benefit your IT infrastructure.
What is a VPN?
The term VPN stands for Virtual Private Network, and refers to a secure, encrypted connection that allows you to access the internet privately by routing your traffic through a remote server. A VPN can be used by an individual or an organisation for a wide range of different purposes.
A VPN masks your real IP address by routing your traffic through a remote server, creating a private, encrypted pathway between you and the internet. The destination website sees the VPN server as the source, rather than the individual user. This means your activity is private from providers, other site users, and malicious actors.
Why would an individual use a VPN?
An individual can use a VPN when accessing internet services to keep their activity and data private and secure. There are many use cases, including protecting data while using public wifi, maintaining anonymity, securely accessing sensitive accounts (such as online banking), or accessing online content in other regions.
Why would a business use VPNs?
The primary reason businesses use VPNs is to enhance security. Just as individuals use VPNs to protect their personal activity and data, businesses rely on VPNs to safeguard sensitive company, customer, and user information by securing access to internal networks.
VPNs help prevent accidental data breaches, for example when employees work remotely or connect over public Wi-Fi, and also offer protection against malicious cyber threats. By encrypting data in transit, they reduce the risk of interception or unauthorised access.
They also play a key role in supporting compliance. VPNs enable organisations to handle personal data in accordance with data protection regulations such as GDPR, ensuring secure communication and minimising the risk of data exposure.
Finally, the rise of remote and hybrid working models has made VPNs an essential tool for connecting distributed teams. They allow employees to securely access files, applications, and systems from anywhere, without compromising on security or performance.
How do VPNs work?
Whether being used by an individual or a business, a VPN works by creating a secure, encrypted tunnel between your device or network and the wider internet.
Simplified down, the process consists of five steps:
- The user or system connects to a VPN client – Whether it’s an employee logging in remotely or an individual browsing from a café, the first step is to connect to a VPN client. This initiates a secure link to a VPN server.
- The VPN encrypts all data in transit – As soon as the connection is established, the VPN encrypts all the internet traffic passing through it. This means the data is scrambled in a way that makes it unreadable to hackers, ISPs, or anyone else monitoring the network.
- Traffic is routed through the VPN server – Instead of going directly to its destination, your traffic is sent through a VPN server. This masks the origin of the data, hiding the user’s real IP address or company network details, and provides an additional layer of protection.
- The VPN server communicates with the internet on your behalf – The VPN server sends your requests (such as visiting a website or accessing a file) to the internet, receives the response, encrypts it again, and passes it back to your device or network.
- Your identity and data remain hidden – The end result is that external sites and services only see the VPN server as the source of the traffic, not the actual user, device, or business network. This prevents tracking, protects sensitive information, and ensures a private and secure connection.
Types of VPN: Client-to-site vs site-to-site
There are two main types of VPN used by businesses – client-to-site and site-to-site.
Client-to-site VPNs are installed as software on a device, for example a laptop or a phone. They allow users to connect to the internet and their corporate network remotely, and access files securely. They are most frequently used for remote workers, travelling employees, or hybrid teams.
Site-to-site VPNs connect entire networks, for example an office to a data centre. They are used to securely link locations, and are most common in enterprise environments.
How are VPNs used in IT infrastructure?
VPNs are a key component of modern IT infrastructure, often forming part of a broader, layered security strategy. VPNs help strengthen an organisation’s overall security posture by protecting data in transit and securing network access points. The data and system protection benefits are multiplied when used in tandem with firewalls, intrusion detection and prevention systems, and access controls.
Any organisation can benefit from incorporating VPNs in their IT infrastructure, but it is particularly important for those handling and transferring sensitive personal data, or that operate across multiple locations. For companies with distributed workforces or remote employees, VPNs provide a secure way to access internal systems and resources without exposing the wider network to unnecessary risk.
VPNs and managed hosting
A managed service provider (MSP) can set up and manage VPNs on behalf of their customers. With various levels of management available, the provider can offer configuration support and performance monitoring.
By using a managed VPN service, businesses gain the security and privacy benefits of VPN technology without the burden of in-house setup or maintenance. This reduces internal overhead and ensures the VPN is configured and running correctly, providing peace of mind and improved reliability.
VPNs aren’t just used for customers – they’re also a critical internal tool for MSPs managing infrastructure and service delivery securely.
An MSP can use a VPN to:
- Securely transfer customer data during migrations
- Allow engineers to access servers for maintenance, updates, and troubleshooting
- Securely access internal networks
- Connect different elements of the MSP’s infrastructure such as linking internal monitoring tools, ticketing systems, or backup environments
- Create secure connections between multiple data centre locations ensuring consistent, encrypted communication between infrastructure
An MSP can utilise both site-to-site and client-to-site VPNs for different purposes. Client-to-site VPNs are used to connect individual devices, for example connecting a technician’s laptop to the network, allowing them to work securely. Site-to-site VPNs can be used to create a secure connection between networks and locations, for example connecting a customer’s environment to a data centre to allow for secure data transfer.
The use of VPNs within managed hosting enhances security, ensures confidentiality and data integrity, supports compliance requirements, and gives peace of mind to customers that their data and infrastructure is protected.
How could you benefit from a VPN?
Whether you’re an individual looking to protect your privacy online or a business needing secure access to critical systems, a VPN offers a simple but powerful way to safeguard data and reduce risk.
At Hyve, we offer fully managed enterprise-level VPN solutions as part of our wider hosting and infrastructure services. Our expert team handles everything from configuration to ongoing performance monitoring, ensuring your VPN is running securely and efficiently, so you can focus on your business.
Our infrastructure and expert engineers utilise VPNs to ensure your platform is secure and your data is protected at all times. From data migrations to remote maintenance and inter-data centre connectivity, VPNs are a core element of our secure, resilient hosting.
If you’re looking to enhance your security with a managed VPN service, or want the reassurance and confidence of working with an MSP who uses VPNs to securely deliver managed hosting, get in touch. Fill out our form and one of our security experts will contact you to discuss how we can work together.