There are over 1.5 billion VPN users in the world, and these users are found more commonly in work and business settings. With the increasing need for data security and privacy, VPNs have become essential tools for businesses of all sizes, and you may be on the lookout for best VPNs for small businesses. Companies often provide their employees with VPNs to enable secure access to internal applications, databases, and other sensitive information when working remotely or traveling.

Today, cyber threats and data breaches are becoming more sophisticated, and even VPN management is a hassle. To protect corporate data, organizations rely on business VPNs to create encrypted connections, ensuring that sensitive information remains safe from unauthorized access. This is particularly crucial for remote workers, as they frequently connect to company networks from less secure public Wi-Fi hotspots, which are more susceptible to cyberattacks. If you want to learn more about what is a business VPN, read on.

What is a Business VPN?

So, what is a business VPN? A business VPN is designed specifically for organizations, offering enhanced features compared to consumer-grade VPNs. These features typically include centralized management, dedicated IPs, and the ability to scale across multiple users and devices. Business VPNs not only protect company data but also improve productivity by allowing seamless, secure access to resources from anywhere in the world.

Furthermore, business VPNs often come with advanced administrative controls, allowing IT departments to monitor and manage access to sensitive information, track employee activity, and ensure compliance with data protection regulations. This makes them an essential tool for businesses looking to safeguard their digital assets while maintaining operational flexibility.

Business VPNs offer employees seamless connectivity and secure remote access to prevent data theft and interception. According to survey results published on SecureFrame – the number of publicly reported compromises on data has increased by a whopping 78% in 2023. The numbers have only increased in the preceding year.

A company VPN or work VPN—other ways to refer to a business VPN—are corporate VPN solutions that help encrypt data, keeping everything safe from prying eyes, phishing attacks, and cybersecurity threats.  

What is a Business VPN? Types Of Business VPNs

There are two types of Business VPNs. 

1. Remote Access VPNs
2. Site-to-Site VPNs

Remote Access VPNs

A remote access VPN enables a secure connection between individual users and a remote network, typically the internal network of a business. This type of VPN relies on two primary components:

1. Network Access Server (NAS): This can either be a dedicated server or a software application running on a shared server, which connects directly to the business’s internal network.

2. VPN client: This is software installed on the user’s computer or mobile device.

When a user needs to access the company’s network, they launch their VPN client, which then creates an encrypted tunnel to the NAS. This encrypted connection allows users to securely access the internal network while keeping their data protected from exposure—offering a critical layer of security for remote workers.

Remote access VPNs are particularly vital for businesses with employees working from various locations. By ensuring that sensitive data is securely transmitted, the risk of cyberattacks, especially when accessing company resources through public Wi-Fi, is greatly reduced. In addition to improving security, remote access VPNs also enhance flexibility, enabling employees to work seamlessly from anywhere while maintaining the same level of access to essential business tools and resources.

To access the company’s network, corporate VPN solutions need to be activated, which establishes an encrypted connection or a “tunnel” to the Network Access Server. The encrypted tunnel will now allow the user to access their employer’s internal network with ease and without the security risk of being exposed. 

Site-To-Site VPNs

Site-to-site VPNs establish a unified virtual network that connects multiple office locations, allowing users across various sites to share the same network infrastructure. Instead of requiring individual users to install VPN clients on their personal devices, the VPN client is hosted directly on each office’s local network. This setup enables all employees within each location to access the shared network seamlessly, without having to activate a VPN connection individually.

However, once a user leaves the office environment, they lose direct access to the virtual network, as the VPN client is tied to the office’s network infrastructure. This method is ideal for companies with multiple branches or offices, as it provides a streamlined way for different locations to communicate and share resources securely without burdening individual employees with VPN setup and maintenance.

The major advantage of site-to-site VPNs is the ability to create a secure, centralized system for an organization’s distributed offices. It simplifies network management for IT teams by consolidating security protocols at the network level rather than managing VPN clients on multiple devices. However, it is important to note that users working remotely or on the go will need an additional solution, like a remote access VPN, to maintain connectivity outside the office environment.

Business VPNs vs. Consumer VPNs

To understand VPNs, understanding business VPNs and their counterparts – consumer VPNs is essential. 

Business VPNs and consumer-oriented VPNs function similarly in that both create an encrypted connection to a remote network, protecting the data that passes through the connection. However, the main distinction between the two lies in their purpose and deployment.

A business VPN is designed specifically to allow employees or entire teams to securely connect to the company’s internal network, whether they are working remotely or in different office locations. It provides secure access to company resources, such as databases, internal applications, and shared files, while ensuring that sensitive information remains protected from cyber threats. Business VPNs are critical for maintaining data privacy and regulatory compliance and enabling secure remote work, especially as distributed teams become more common. These VPNs typically offer centralized control, allowing IT departments to manage user access, monitor network activity, and ensure proper security measures are in place.

On the other hand, a consumer-oriented VPN connects an individual user to a remote server or a group of servers, which act as intermediaries between the user and the public Internet. These VPNs are primarily used to safeguard personal privacy by masking the user’s IP address, encrypting online activity, and bypassing geo-restrictions or censorship. While they offer security for personal browsing, consumer VPNs are not typically designed for accessing internal corporate resources or handling sensitive business data.

While both VPN types offer security and encryption, their specific use cases differ significantly. Business VPNs focus on secure company resource access, while consumer VPNs prioritize personal privacy and unrestricted access to the Internet.

Here is a further breakdown of how the two differ. 

1. Usage Type – Single Versus Multi-User

Consumer or personal VPNs are designed primarily for individual use, typically allowing a single user to connect multiple personal devices such as smartphones, laptops, or tablets. These VPNs cater to personal security and privacy needs, ensuring data encryption for browsing, streaming, or online activities. They are not intended to manage large networks or accommodate multiple users under the same account. 

In contrast, business or enterprise VPNs support multi-user connections, allowing numerous employees within an organization to securely access the company’s internal network simultaneously. These VPNs are designed to handle higher traffic, providing secure connections to sensitive company resources like servers, internal applications, and databases. Additionally, enterprise VPNs are often integrated with other business-critical tools such as centralized management consoles, network monitoring, and IT support systems, making them more robust for scaling across teams. 

Business VPNs are essential for remote work. They allow distributed teams to access the company network securely from any location. This multi-user capability ensures all users can have secure, encrypted access while maintaining overall network performance.

2. Account Management

Setting up a personal VPN is typically straightforward and involves a one-time account setup. This allows a single user to manage their account details, connection preferences, and security settings. Once the account is created, the individual user is responsible for maintaining their connection, renewing subscriptions, and ensuring that their privacy settings meet their needs. However, business VPNs introduce a more complex layer of account management due to the need to handle multiple users and their varied access permissions. 

Administrators in business VPN environments are tasked with managing multiple employee accounts, setting access controls, and enforcing security policies tailored to different departments or job roles. This often includes granular control over who can access specific network resources, assigning or revoking permissions, and monitoring user activity for security purposes. Moreover, business VPNs often integrate with directory services like Active Directory, allowing for centralized user management. This means administrators can easily add or remove users, enforce multi-factor authentication, and monitor for unusual activity across the network, ensuring that security protocols are consistently applied throughout the organization. The management tools in business VPNs are critical for maintaining security at scale and reducing the risk of internal breaches.

3. Dedicated and Shared IP

With personal VPNs, users typically share an IP address with many other users when they connect to the internet, which can help maintain anonymity but might lead to slower speeds or being flagged by certain services (like streaming platforms) that detect high traffic from a single IP. Shared IP addresses can be advantageous for users seeking privacy since it’s difficult to trace online activity back to one individual when multiple users share the same IP. However, they are less suited for scenarios requiring enhanced security or unique identification. On the other hand, business VPNs often provide dedicated IP addresses, which are exclusively assigned to a particular user or organization. 

A dedicated IP offers significant advantages in terms of privacy, security, and access control. For businesses, a dedicated IP ensures a consistent and identifiable connection to company resources, reducing the risk of being blocked or blacklisted by external services. Additionally, it enhances security by ensuring that only authorized users with the assigned IP can access specific internal systems or data. This level of control is particularly important for businesses handling sensitive information, as it minimizes the risk of unauthorized access and provides a clear audit trail for network activity.

Some other differences between the business VPNs and consumer VPNs:

Another notable difference between business VPNs and consumer VPNs is in their pricing structures and subscription models. Personal VPNs are generally cheaper, catering to individual users with straightforward needs like browsing privacy, streaming content, or accessing geo-restricted websites. 

Subscription plans for personal VPNs are usually monthly or yearly, with costs scaled according to the number of devices a user can connect. However, business VPNs offer more competitive pricing based on the size and needs of the organization. While the initial costs may appear higher due to the broader feature set, they often include volume-based discounts, long-term contracts, and tailored solutions that become more cost-effective as the number of users increases. In addition, business VPNs come with added maintenance and support services, including dedicated customer service teams, 24/7 IT support, and service-level agreements (SLAs) to ensure minimal downtime.

Maintenance costs also vary. Personal VPNs are typically low-maintenance, requiring occasional updates and minor user intervention. On the other hand, business VPNs necessitate regular management, security updates, and network monitoring, often handled by in-house IT teams or outsourced to managed service providers. Lastly, privacy considerations differ significantly. Individual users of consumer VPNs focus on personal privacy—masking their IP, securing browsing data, or avoiding online tracking. Corporate VPNs, however, emphasize organizational privacy and data protection, ensuring secure communication between employees and internal company resources. Business VPNs also provide enhanced security features like endpoint protection, encryption protocols, and access control, all aimed at safeguarding sensitive corporate data from external threats.

What is a Business VPN – Pros and Cons

When used as intended, a VPN relies on up-to-date cryptographic protocols to encrypt data between remote employees or teams. VPNs are generally more cost-effective and easier to manage than higher-end legacy solutions, which can be expensive and complex for businesses.

Pros of Business VPNs

1. Endpoint Security

Every employee device, or endpoint, represents a potential access point for hackers attempting to infiltrate a company’s network. With the rise of remote work, the threat posed by unsecured devices used to steal data or spread ransomware is higher than ever. However, by equipping all company devices with a VPN client, data transmission is routed through encrypted tunnels, significantly reducing the risk of a security breach.

However, despite their many benefits, VPNs’ limitations should be carefully considered before implementation.

2. Scalability

As a business expands, its security measures must evolve to address the increasing risks associated with growth. One of the key advantages of a VPN is its scalability. When new employees are onboarded, they simply need to download the VPN client to their devices—a fast and straightforward process. This ensures they receive the same level of security and privacy as the rest of the company.

3. Reduced Maintenance Cost

By using a third-party VPN provider, you eliminate the need to manage server upkeep and network infrastructure. The VPN provider handles all maintenance, allowing you and your team to stay focused on your work without worrying about technical overhead.

In addition to reducing costs and labor associated with server management, third-party VPN providers typically offer ongoing updates and security enhancements. This means your team is always protected with the latest security protocols without the need for in-house expertise. The flexibility of these services allows you to scale your operations easily, ensuring a seamless experience as your organization grows while maintaining strong security and privacy standards.

Cons of Business VPNs

1. Security Risks and Data Protection

While VPNs enhance security, they are not foolproof. If VPN credentials are compromised, attackers can gain access to sensitive data, putting the company at risk. Ensuring strong authentication measures and secure credentials is critical to prevent data breaches.

2. Performance Issues

VPNs can suffer from latency issues, as they use the processing power of the local system. This can lead to slow or inconsistent performance, especially on less powerful hardware. Using higher-end components can improve efficiency, but if a system is underpowered, the VPN may not function smoothly, impacting the user experience.

3. VPN Aging

As technology evolves rapidly, VPNs—while still widely used—are considered an older solution. Developers are continually working on advancements, but newer technologies could eventually surpass VPNs, offering more efficient and secure alternatives. Companies should stay informed about emerging technologies to avoid relying on outdated systems.

4. Privacy Issues

While VPNs can enhance data security, they do not guarantee complete privacy. Employers can still monitor employee activity, which may affect morale and productivity. This oversight, though useful for businesses, could lead to employees feeling watched, resulting in divided attention and long-term performance issues.

5. Costly Mounting

Using on-premises network-attached storage (NAS) to connect employees via VPN clients can be expensive. Hardware must be regularly updated to defend against evolving cyber threats. If the NAS cannot handle increasing traffic, it may become overloaded, leading to costly crashes or downtime.

Should You Use a Business VPN? 

Over the years, the pros and cons of VPNs have remained largely the same. What has changed is how companies have adapted to these limitations. While VPNs offer critical security benefits, the looming threat of security breaches continues to be a challenge. Despite their many advantages, VPNs are increasingly falling out of favor with businesses, largely because traditional, one-size-fits-all solutions fail to meet the unique needs of individual companies. The demand for more tailored, scalable solutions is growing as businesses seek greater control over their network security and privacy.

However, there are smarter, more effective ways to leverage VPNs’ benefits—one of which is by creating a custom VPN that addresses your company’s specific requirements. PureWL offers a flexible white-label solution that lets businesses build their own VPNs perfectly suited to their unique needs.

Unlike generic business VPNs, which are designed to be universally applicable, PureWL as an enterprise VPN solution provides a fully customizable VPN experience. Every business operates differently, with distinct security requirements, user bases, and infrastructure needs. PureWL understands these complexities and offers bespoke VPN solutions built from the ground up. With features like custom branding, seamless multi-platform integration, robust network infrastructure, and comprehensive VPN management, PureWL ensures that your business’s security is both scalable and future-proof.

Empower your company with a VPN that works for you. Get started with PureWL today and secure your network on your terms.