A VPN is a private network that uses a public network (the Internet) to connect remote sites or users in a secure manner. Instead of using a dedicated, real-world connection such as leased lines (ISDN, T1), a VPN establishes "virtual" connections routed through the public Internet from a remote location to a private network.
This virtual connection acts as a tunnel that securely passes encrypted data packets back and forth between the remote site and the private network.
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-- JimWilgenbusch - 04 Mar 2005