Chapter 4, Case 3
Link Staffing, FMC, AutoWeb, and APL Logistics:
Evaluating Virtual Private Network
WHAT ARE VPNs?
VPNs typically are IP-based networks
(usually the public Internet) that use
encryption and tunneling to achieve one or
more of the following goals:
• connect users securely their own corporate
network (remote access)
• link branch offices to an enterprise network
• extend organizations' existing computing
infrastructure to include partners, suppliers
and customers (extranet).
HOW DO VPNs WORK?
• Step 1.
The remote user dials into their local ISP and logs
into the ISP network as usual.
• Step 2.
When connectivity to the corporate network is
desired, the user initiates a tunnel request to the
destination Security server on the corporate
network. The Security server authenticates the user
and creates the other end of tunnel.
• Step 3.
The user then sends data through the tunnel which
encrypted by the VPN software before being sent
over the ISP connection.
• Step 4.
The destination Security server receives the
encrypted data and decrypts. The Security
server then forwards the decrypted data
packets onto the corporate network. Any
information sent back to the Remote user is
also encrypted before being sent over the
The figure above illustrates that VPN software can be used
from any location through any existing ISP dial-in service.
ADVANTAGES OF VPN
• Secure data transmission with Tunneling
Protocol through Internet
• Cost effectiveness and eliminates long
• Ensures confidentiality, authenticity and
integrity of the data transmitted.
COMPANY VPN Provider
• FMC Corporation • Aventail Corp.
• AutoWeb • ANXebusiness Corp.
• APL Logistics • Equant NV
• Link Staffing • OpenReach Inc.
• Founded in 1883 by John Bean
• One of the foremost chemical companies.
• Today, it maintains leading position agricultural,
industrial and consumer markets.
• FMC provides innovative and cost-effective
solutions to food and agriculture, pharmaceutical,
textiles, rubber and plastics, lubricants, structural
pest control, specialty and related industries.
FMC AND VPN
• VPN enables FMC to control employee
• Enables employees traveling or working
from home to securely access their
information tools and assets on the
network from anywhere in the world
over the Internet.
WHY DID FMC CHOOSE
FMC chose Aventail for three key reasons:
First, their proxy server technology added a
layer of security that made FMC feel extra
Second, Aventail’s people—from the sales
people to the deep-techies— knew the
technology and how to use it cold;
Finally, their managed service model fit FMC’s
management approach like a glove.”
• Unit of Neptune Orient Lines Ltd.(shipping
• Services provided by APL are:
Supply chain Management
Warehousing and Distribution
Global Freight Management
WHY DID APL CHOOSE
• Equant NV has the global reach to connect
business behind 76 massive ships- end- to- end
and port- to- port.
• Equant NV one of the few IP VPN providers that
can offer guaranteed QoS no matter how far from
home each port is.
• 180 sites in 32 countries now share a single
integrated IP VPN - helping APL jump from No.
456 to No.57 in InformationWeek's annual
rankings of the world's top technology users
• Established: March 1997
• Headquarters: Oak Park, Michigan, U.S.A
• The firm has a client base of more than
1,000 companies, including General Motors
and Daimler Chrysler.
• Nippon Telegraph and Telephone
Corporation (NTT) has purchased an 80%
stake in AutoWeb Communications, Inc
Services Provided by AutoWeb
Why do companies implement virtual private
Question #1 - Solution
• Networks in general allow different parties
to interact more quickly and efficiently and
make collaboration more effective
• The special advantages of a virtual private
network (VPN) are:
- Decreased maintenance and installation
costs since the network‘s main backbone is
Question #1 - Solution
- Increased security over the internet
- Increased performance through higher
speed than traditional low-speed private-
- Allows mobile employees, like field
workers, to access the company’s network
- Easy integration of outposts, customers and
suppliers of the company
What is the business case for outsourcing
Question #2 - Solution
Advantages of outsourcing VPN services:
• Most companies lack the staff to design and
to manage such a system.
• Professional services guarantee higher
Question #2 - Solution
• Some firms just want to off-load the hassle
of administrate such a network.
• For large firms with many branch offices,
setting up can be a significant investment
that requires the expertise of a professional
What role does network management software
play in implementing and managing VPNs?
Question #3 - Solution
Network management software-
Enables network security
Used for encryption and decryption of data
Used to support firewall architecture of the
Assign access controls to various users.