a vpn, or virtual private network, is a connection between two endpoints - a vpn router, for instance - in different networks that allows private data to be sent securely over a shared or public network, such as the internet. this establishes a private network that can send data securely between these two locations or networks.
this is done by creating a “tunnel”. a vpn tunnel connects the two pcs or networks and allows data to be transmitted over the internet as if it were still within those networks. not a literal tunnel, it is a connection secured by encrypting the data sent between the two networks.
vpn was created as a cost-effective alternative to using a private, dedicated, leased line for a private network.
using industry standard encryption and authentication techniques - ipsec, short for ip security - the vpn creates a secure connection that, in effect, operates as if you were directly connected to your local network. virtual private networking can be used to create secure networks linking a central office with branch offices,telecommuters, and/or professionals on the road (travelers can connect to a vpn router using any computer with vpn client software that supports ipsec, such as ssh sentinel.)
there are two basic ways to create a vpn connection:
1 vpn router to vpn router
2 computer (using vpn client software that supports ipsec) to vpn router
the vpn router creates a “tunnel”or channel between two endpoints, so that data transmissions between them are secure. a computer with vpn client software that supports ipsec can be one of the two endpoints. any computer with the built-in ipsec security manager (microsoft 2000 and xp) allows the vpn router to create a vpn tunnel using ipsec). other versions of microsoft operating systems require additional, third-party vpn client software applications that support ipsec to be installed.

vpn router to vpn router
an example of a vpn router-to-vpn router vpn would be as follows. (see figure 2-1.) at home, a telecommuter uses his vpn router for his always-on internet connection. his router is configured with his office's vpn settings.
when he connects to his office's 10/100 16-port vpn router, the two routers create a vpn tunnel, encrypting and decrypting data. as vpns utilize the internet, distance is not a factor. using the vpn, the telecommuter now has a secure connection to the central office's network, as if his computer were physically connected.
computer to vpn router
the following is an example of a computer-to-vpn router vpn. (see figure 2-2.) in her hotel room, a traveling businesswoman dials up her isp. her notebook computer has vpn client software that is configured with her office's vpn settings. she accesses the vpn client software that supports ipsec and connects to the 10/100 16-port vpn router at the central office. as vpns utilize the internet, distance is not a factor. using the vpn, the businesswoman now has a secure connection to the central office's network, as if her computer were physically connected.
for additional information and instructions about creating your own vpn, please visit linksys’s website at www.linksys.com.