VPN costs savings

Nick v d Walt nick at VDWALT.COM
Mon Jan 29 07:06:29 EST 2001

Two Sides of the spectrum.

Security - Less secure than a point to point Leased line system as you are
dealing in a public domain. Triple DES is not allowed in all countries
across the world - resulting in using single des............drop in

It all depends on how you look at it. I am an IT Manager for the Eastern
Hemisphere of an international organisation, and yes the reduction of
quarterly payments was the deciding factor. But then again i am only saving
about $5k per quarter at some locations.

Playing Devils Advocate a bit.

Either way, VPN is a winner.



-----Original Message-----
From: VPN Mailing List [mailto:VPN at SECURITYFOCUS.COM]On Behalf Of Jose
Sent: 25 January 2001 09:26
Subject: Re: VPN costs savings

I fully agree with Chris,
Also let me add up that when you might need to pay $K's and a lot of
for dedicated circuits across the globe, the VPN will save you so
Also lets keep in mind the logistics and turn around time to set a
dediated circuit T1, DS3
or whatever the price to pay in time and provisioning is much greater.
As far as the points have connectivity to the big I the VPN deployment
is just
a couple of hrs.
So with all this plus the security benefits.. it is a no brainer


Chris Carlson wrote:
> Ah, I love a discussion!
> While I agree with Sandy that security is one driver
> for VPNs, I think she's incorrect in her weighting
> factors.  I think that cost savings is THE single
> largest driver by far.
> Sure, some companies use VPNs to better secure their
> connections, but you can do that with hardware
> encryptors on Frame or ATM WAN links.  Why go with a
> possibly less reliable ISP-based VPN just to get more
> security?
> I've been doing security consulting for years and now
> am in Product Management at a start-up "next-gen"
> carrier, and we've never had a problem selling VPNs.
> The cost savings alone make VPNs sell themselves.
> I view security as an enabler, as a means to an end,
> not the end.  Because VPNs are secure ENOUGH (if
> implemented properly and appropriate for your
> acceptable level of risk), they enable low cost WAN
> and remote access connectivity.  Up to 50% savings in
> certain WAN scenarios and up to 90% savings in certain
> remote access scenarios.  One past client of mine is
> saving $4,000,000 a year with their remote access VPN!
> So, yes.  Everyone loves VPNs.  Providers love them
> because they sell more circuits.  Vendors love them
> because they sell more VPN boxes and software.  IT
> Managers love them because they reduce WAN and remote
> access costs.  Every dollar saved on
> telecommunications costs goes right down to the bottom
> line as profit!
> The BUSINESS CASE depends on cost savings, not
> security.
> I've seen companies that are paranoid about VPN
> security: 1,024 bit algorithms, smart cards,
> biometrics, firewalls, air-gaps, etc. and when I ask
> them how they secure their UNENCRYPTED Frame Relay WAN
> that ANYONE working for that provider can easily
> sniff, their jaw drops wide open.  Doh!
> It's up to the Security or IT department to use enough
> security that meets the company's business demands:
> protect sensitive data up to the acceptable level of
> risk, enable lower cost telecommunications to save on
> costs, and (possible) enable E-commerce to drive
> revenue, all without expending undue extra costs.
> *whew*  Big ole rant from Chris!  :)
> Chris
> --
> --- Sandy Harris <sandy at STORM.CA> wrote:
> > There can be large cost savings, especially where a
> > VPN running over the
> > Internet replaces an expensive leased line solution.
> > However, I think that's
> > the wrong question.
> >
> > The business case for VPNs depends mainly on
> > security, not cost savings, and
> > the value of security depends on the value of your
> > data.
> >
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