IP VPN: An overview (Part 1)

What is an IP VPN?

An IP VPN is a private network that is set up for you on a shared IP-based backbone of a telecommunications provider. It is based on MPLS technology. The abbreviation VPN stands for virtual private network. In contrast to private networks, which are based on individual point-to-point lines, the private network in a VPN is only created virtually. Individual customer networks are set up virtually on the backbone of a telecommunications provider’s network. This is of course much cheaper and more flexible than setting up dedicated, complex point-to-point routes for each customer. IP VPNs differ from the extensive product group of VPN technologies in that the data is transported via a so-called IP network. Let us now take a look at some of the key advantages of IP VPNs.

Advantages of an IP VPN

With IP VPN, your company network benefits from at least one of the following aspects. Cost reduction compared to more expensive point-to-point services. Connection of locations where no private network, i.e. dedicated connections, are available, e.g. in remote areas, abroad or in areas with limited infrastructure. In Germany, there are many places where there is no fiber optic and therefore no dedicated line available. A further advantage of IP VPN can unfold during network rationalizations. For example, two networks can be merged in the event of mergers or takeovers of other companies. A major driver for IP VPN is also the merging of voice and data traffic into one network. The cost-efficient and secure connection of small locations and remote users can also be an issue.

Comparison of IP VPN to Ethernet Private Network (EPN)

If you compare managed IP VPNs with EPNs, some key differences emerge. Since managed IP VPNs are mapped in the carrier network on a shared platform, they are more flexible than private networks, which are much more difficult to adapt to changes in the company’s bandwidth requirements, for example. This is much easier in a shared network that is also open to two carriers. There are often no high costs and restrictions when adapting. An example: For a customer, we connect all locations with 100 Mbit/s carrier links, of which only 50 Mbit/s are initially used and paid for. If demand increases, the available bandwidth can be immediately adjusted up to 100 Mbit/s. The same can of course also be done with higher bandwidths. Let us now look at the possible network topologies. In addition to Hub and Spoke and Point to Point, Any to Any networks can typically also be mapped in the IP VPN. IP VPN also offers a greater choice in terms of the access technologies used. SDSL, Wifi, leased line, LTE, UMTS or radio relay are all easy-to-integrate network connections. The five different service classes in the IP VPN make it easier to control the quality of the individual applications in the network, such as data, voice, video or storage, in a targeted manner and to ensure that all services within the network run smoothly. This makes IP VPN an attractive option for companies to manage their in-house network for a large number of locations.

IP VPN vs. EPN at a glance