Virtual Private Networks (VPNs) not only allow small, medium and large enterprises to implement remote access via the Internet but it also delivers compelling benefits for organizations to work smarter, reduce costs, and gain competitive advantage.

The New Distributed Workplace

VPN creates a private means for communication between geographically distributed locations.

A convergence of business, social, and technology trends are driving the dispersion of today's enterprise into a distributed workplace:

• Rapid proliferation of powerful, affordable PCs and other small office technologies.
• Emergence of the Internet as the global data communications network for linking geographically dispersed locations.
• Demand by employees for flexible work arrangements in response to growing commute times and family needs.
• Drive for improved productivity and reduced costs by companies.
• Need for recruiting and retaining talent located outside the confines of the local geographical area.
• Explosive availability of affordable, broadband Internet connections (DSL, cable and wireless).

The Remote Access Explosion

Remote access trends are firmly in place and they promise to accelerate in the future. Here is just a sampling of recent research, surveys and projections on remote access and telecommuting.

• A survey sponsored by AT&T and released by ITAC (International Telework Associated and Council) shows a 20.6 percent growth in the number of telecommuters between 1999 and 2000. The survey also shows the number of teleworkers employed part-time or full-time in 2000 totaled 23.6 million.
• A Gartner Group study shows in 2000 there are more than 30 million U.S. telecommuters. The study predicts more than 137 million workers will be involved in some sort of remote work by 2003.
• A study commissioned by Bell Atlantic estimates that two million American businesses support some kind of telecommuting program. Public sector telecommuting is increasing with the U.S. Federal government planning to have about 3% of its workforce telecommuting by 2002.
• Jack Nilles of JALA International expects telecommuting to grow at a rate of about 18% a year. Nilles predicts that there will be 230 million telecommuters worldwide by 2030.
• Infonetics Research forecasts a 529% increase in VPN expenditures from 2000 through 2004.
• IDC projects that by 2004, mobile professionals will make up 34% of the US mobile and remote population, followed by work extenders (31%), telecommuters (21%), and mobile data collectors (14%).
• According to TeleWork Survey from the International Telework Associated and Council (ITAC), 89% of teleworkers are home based and the average age of these teleworkers is early 40s.

VPN: A Cost Effective Remote Access Solution

VPNs are creating a revolution in remote access by replacing expensive leased lines and usage-based dial-up connections with ubiquitous Internet connections. With VPN technology, companies of any size can use the Internet to broaden the reach of their Intranets and Extranets. By replacing expensive leased lines or long-distance telephone usage charges with local connections to Internet service providers (ISPs), companies save money because local Internet connections are less expensive. Mobile employees can simply dial into a local service provider, eliminating the need for costly 800 numbers and modem banks.

 

Traditional remote access required companies to purchase expensive dedicated leased lines for remote offices and maintain costly 800 numbers and modem banks for dial-up users.

By replacing long-haul leased lines and long-distance telephone charges with local Internet connections, companies can cost-effectively connect remote offices and users together via a VPN.

VPN is a Strategic Necessity

Today, remote access to information and corporate resources is a strategic necessity for any size business. A remote access solution:

• Arms employees with up-to-date information, enabling them to make the most informed decisions possible.
• Streamlines access to information and enables centralization of mission-critical data and content.
• Reduces networking costs by using the Internet to replace in-house WAN and dial-up networks.
• Extends the workplace beyond the office walls to allow people to be fully productive at home and on the road.
• Provides an edge in recruiting employees looking for flexible work schedules.
• Fosters competitive advantage by creating closer links with customers, suppliers and employees.
• Increases employee productivity through workplace flexibility
• Allows network administrators to centrally enforce security policies.
  
  Economics of VPN-Powered Telecommuting
  

VPN combined with telecommuting programs delivers a powerful “win-win” solution for employers and employees. VPN-powered telecommuting delivers compelling benefits for organizations:

• Productivity among telecommuters is 22 percent to 45 percent higher due to fewer interruptions, less time off because of weather or sick children, and no commuting time (The Gallup Organization and Opinion Research).
• Employers can save up to 63% of absenteeism costs per telecommuter (ITAC).
• Telecommuting can cut corporate real estate costs 25-90% (PC World).
• Telecommuting can reduce manager to staff ratios from 1-4 to 1-40 (Fort Lauderdale Sentinel).
• Companies can save up to $8,000 annually in office space for each telecommuter.
• US employers could save $441 billion in reduced absenteeism and recruiting costs, and increased productivity from telecommuting.

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