To emulate a point-to-point link, data is encapsulated, or wrapped, with a header that provides routing information allowing it to traverse the shared or public transit internetwork to reach its endpoint. To emulate a private link, the data being sent is encrypted for confidentiality. Packets that are intercepted on the shared or public network are indecipherable without the encryption keys. The portion of the connection in which the private data is encapsulated is known as the tunnel. The portion of the connection in which the private data is encrypted is known as the virtual private network (VPN) connection.

VPN is a cost effective and secure way for different corporations to provide user access to the corporate network and for remote networks to communicate with each other across the Internet. Secure VPN are more cost-effective than dedicated private lines; usually VPN involves two parts: the protected or "inside" network, which provides physical and administrative security to protect the transmission; and a less trustworthy, "outside" network or segment (usually through the Internet). Generally, a firewall sits between a remote user's workstation or client and the host network or server. As the user's client establishes the communication with the firewall, the client may pass authentication data to an authentication service inside the perimeter. A known trusted person, sometimes only when using trusted devices, can be provided with appropriate security privileges to access resources not available to general users.

Netplus Nepal provides Virtual Private Network Service(VPN) to the customers who have to frequently travel out of the workplace, but still have to acess information of their desktop from remote places. Softwares like VNC and Hamachi makes it possible to acess the remote computer at office from anywhere in the world through the internet.