Special Report: Taking on virtual private networks

By Chandra Devi

Local operations with regional and global concerns are advised to create virtual private networks (VPN) as a mean of establishing fast, secure and reliable communications wherever their offices are.
A VPN is a private network that uses a public network, which usually is the Internet, to connect remote sites or users together. Instead of using a dedicated, real-world connection such as leased line, a VPN uses “virtual” connections routed via the Net from the company’s private network to remote sites.

Cost effective
Instead of depending on leased lines to maintain a wide area network (WAN) which is expensive, Cheah Sung Chai, general manager of Computer Applied Systems & Engineering Sdn Bhd (CASE), says businesses can extend their networks via VPN which allows private data communication among headquarters and branches in a secured Internet- or intranet-based network at a lower cost.
“Other than extending remote connectivity and providing opportunities for networking, VPN offers lower operational costs and higher security for data transmission as compared to traditional WAN connectivity,” he says.
“Employees on the move or in remote areas can safely log into company networks and will find this infrastructure a more convenient way to stay plugged into the corporate intranet,” he adds.
Security, reliability and scalability are obvious benefits for companies taking on VPN, he adds.

Web-based solutions
According to Cheah, one of the reasons that kept small businesses with offices in different locations from implementing Web-based e-business solutions was the high costs of dedicated lease lines.
As dedicated lines to connect offices in different locations are expensive, usually only large companies purchased these lines and implement Web-based solutions to empower their operations, he says.
However, with the support of lower-cost VPNs, smaller businesses with distributed user base can also afford to implement Web-based supply chain management and back-office operations which will enable real-time communications with manufacturers, distributors, suppliers and business partners, and boost productivity and revenue, Cheah says.
“A VPN supported Web-based supply chain management solution will provide quick access to information, 24-hour reporting and enable fast decision making which are essential to stay competitive,” he adds.
Concerning CASE, Cheah says the company has developed Intrashop, a Web-enabled e-business solution that provides and implements core business integration solution to expand daily business to become more efficient.
The solution offers reporting and management capabilities in areas including point-of-sale, store management, time and attendance, inventory, inter-store transfers and customer relationship management (CRM), he says.
He adds that Intrashop is a multi-module application that helps chain store, franchiser and direct-marketing companies to manage their businesses, including one-to-one customer service, just-in-time inventories, interacting with suppliers and logistic tracking. “It opens up the e-commerce channel for retailers, including online shopping and home delivery options.”
The solution, had won an honourable mention at the 7th Annual Microsoft Retail Application Developer Award in 2002.
The award is an annual event held by Microsoft to recognise companies that provide tools for the retail and hospitality industries to provide a higher level of customer service.

This Article was published at Malaysia newspaper “New Straits Times”, dated 01 July 2004 under Computimes page 10.

http://www.emedia.com.my/TECH/BizComp/NewsAnalysis/20040701101929/wartrevamp