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Enabling Secure
Virtual Private Networks
Over the Internet
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Enabling Secure Virtual Private Networks Over the Internet

Contents
Introduction 3

The Promise of Internet-Based Networking 3


■ Migration of technologies onto a common infrastructure
■ Current and future applications migration

The Importance of Internet Virtual Private Networking 4


■ Tremendous cost savings
■ Outsourcing of equipment and management
■ Integration of applications onto a

common platform and infrastructure


■ VPNs – an excellent WAN solution today

Security over the Internet 5


■ Strong security with Intel Express Routers

Internet VPNs with Intel Express Routers 6


■ Setting up links to ISPs
■ Easy transmission via any ISP
■ Tunneling LAN protocols and filtering

Alternative Solutions 7
■ Router vendors
■ Application software developers and operating systems
■ Firewall or dedicated devices

The Future of VPNs 9


■ Quality of Service (QoS)
■ Bandwidth

Conclusion 10

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Introduction Intel Express Routers provide one promises – the fulfillment of which has
As a leading vendor of networking of the simplest and most secure VPN changed computing for the better.
products, Intel Corporation is committed solutions available today. They require
Affordable wide area networking
to making the network infrastructure no additional hardware or software and
has been one of the Internet’s key areas
better suited for the applications that no changes to the corporate infrastructure
of promise. By taking advantage of the
businesses depend on. The Internet is or network applications. LAN-to-LAN
Internet as a common networking envi-
key to this endeavor. Since the emergence communications travel securely over the
ronment, companies can dramatically
of multimedia, the Internet has had an Internet, as easily as standard Internet
reduce the costs of connecting their
unprecedented impact on PCs, appli- traffic, using virtually any Internet
Service Provider. business sites and teleworkers. This
cations and networking. It now offers
savings occurs because the cost of the
enormous opportunities for improvements
high-bandwidth Internet infrastructure
in interoperability and cost savings for The Promise of
is shared among the many companies
wide area data communications. Internet-Based that use it, somewhat like a large,
This paper describes the forces that Networking cooperatively owned WAN.
are influencing the industry migration to Since the advent of the graphical Web
browser, computer users throughout Migration of technologies onto
Internet-based networking and discusses
a common infrastructure
how businesses can realize the promise the world have been able to access
of the Internet by using Intel Express ever-increasing volumes of remote The clear advantages of globally inter-
Routers and tunneling to create information with unprecedented operable email and immediate access
Virtual Private Networks (VPNs). ease and sophistication. The resulting to worldwide information have quickly
VPN technology opens doors that explosion in the popularity of the consolidated the Internet’s position as a
may not have been available to Internet has helped to create a common, vital business tool. Many companies in
companies before, offering increased standards-based infrastructure for global the computer industry already assume
security and reduced costs for digital communications. This, in turn, that customers have Internet connectivity
Wide Area Networking (WAN). has launched a spiral of visionary and use the ubiquitous TCP/IP networking
protocol. Thus, the Internet and its
standard protocols have become a
Traditional, Proprietary The Internet as an
Applications Platform Applications Platform common denominator for networking
applications. This common platform has
■ Proprietary hardware and software ■ Standards-based applications
several advantages over the traditional
■ Proprietary security models ■ Common security architecture
model (Figure 1).
■ Disparate components ■ Shared/multipurpose components
■ Multiple WAN connections ■ Shared WAN connections Current and future
applications migration
Figure 1
Many applications – and even whole
Today’s Applications Internet-Based Applications categories of applications – are now
migrating to the Internet as the common
■ LAN-to-LAN connectivity ■ Internet VPN
platform. For example, email systems
■ Remote LAN access ■ Remote access VPN
are shifting from proprietary messaging
■ Corporate BBS, public notes, etc. ■ World Wide Web
protocols to support Internet-standard
■ Corporate email ■ Internet email
protocols such as SMTP, POP3 and
■ Fax, network fax ■ Internet fax
IMAP. Other examples exist in virtually
■ Voice telephony ■ H.323 Internet phone every area of networking applications
■ Videoconferencing ■ H.323 Internet video phone (Figure 2).
Figure 2

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The Importance Intel’s line of Express Routers enable A simple cost comparison illustrates
of Internet Virtual multi-site businesses to realize immediate the magnitude of the potential savings
Private Networking and tangible benefits from VPN tech- using Internet VPNs as opposed to
Two key steps allow a company to take nology. They enable secure tunneling traditional dedicated lines (Figure 3).
maximum advantage of the Internet for over any supported WAN or Internet
As with any service, the opportunity
business communications. The first step link, so businesses can safely and easily
for savings varies with the particular
is to establish Internet access. The second set up private LAN-to-LAN routing
circumstances of each company. In
is to take advantage of the Internet for over the public Internet.
general, the greatest cost savings arise
networking multiple business sites. Tremendous cost savings when dedicated connections to distant
Internet Virtual Private Networking For companies that now use private sites are replaced with local Internet
(VPN) can help businesses take these WANs, the dramatic cost savings provided connections for each site. The dedicated
key steps, providing secure LAN-to-LAN by VPNs fully justifies the current excite- WAN connections from each site to the
networking at a fraction of the cost of ment about this new technology. For many Internet Service Provider’s (ISP’s) point
traditional long distance connections. other companies, the affordability of of presence (POP) are cheaper because
Until now, this technology has generated VPN technology offers a way to reap WAN services are typically priced based
a great deal of talk but few actual solu- the benefits of wide area networking on distance as well as bandwidth.
tions that businesses can use. for the first time.

Typical monthly costs for traditional private WAN connections versus Internet access
PRIVATE WAN CONNECTIONS INTERNET ACCESS
ISDN ISDN Frame Relay (VPN)
Bandwidth 9 hours/day 24 hours/day 24 hours/day 24 hours/day
5 days/week 7 days/week 7 days/week 7 days/week
64Kbps $1,884 $6,571 $1,276.50
$673-$888 per link
128Kbps $3,504 $14,054 $3,168.75

Explanation of Charges
■ ISDN has a low monthly rate, but charges 1 to 2 cents per minute plus additional long distance rates. For example:

GTE in Hillsboro, Oregon, charges $94 for installation and $48 per month for business, plus 1 to 2 cents per minute
depending on distance and time of day for a local call. Long distance calls for business-to-business connections cost
the same as telephone long distance x 2 for 2 B channels (128Kbps).
So charges for 9 hours/day, 5 days/week are: $48 + (9 hours x 60 = 540 minutes x 20 days = 10800 x $.02 = $216) =
$264/month. Add long distance at 15 cents/minute = $1,620 + $264 = $1,884/month to connect two offices at 64Kbps.
$3,504 for 128Kbps.
Charges for 24 hours/day, 7 days/week are: $48 + (24 hours x 60 = 1440 minutes x 30 days = 43,200 minutes x
$0.02 = $864) = $912/month. Add long distance at 15 cents/minute = $6,480 + $912 = $6,571/month to connect two
offices at 64Kbps. $14,054 for 128Kbps.
■ Internet Access charges are also based on charges quoted in Hillsboro, Oregon. They include $123/month for a full
time Frame Relay connection plus an Internet access fee of $550/month from an independent ISP or $765/month
from GTE, the local Telco.
Prices shown are as of 7/97, valid only in the United States, and quoted in U.S. dollars. Although we make every effort to ensure that this information is accurate,
Intel assumes no responsibility for errors of fact or omissions herein. This information is subject to change without notice.

Figure 3

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Outsourcing of equipment access, eliminating the need for dedicated infrastructure. Although this is a reason-
and management remote access servers with numerous able concern given the vast size and open
For many companies, lower WAN service modems and analog phone lines. A few accessibility of the Internet, current
charges are only the most obvious benefit more years down the road, voice tele- technology offers appropriate security
of establishing Internet VPNs. They phony and videoconferencing services for most businesses.
can also save from less complex WAN (which today require a separate network)
The most important consideration
management. In fact, using the Internet are likely to make the transition into data
for Internet security are:
for LAN-to-LAN connectivity is a highly network services and ultimately integrate
cost-effective means of outsourcing with Internet VPN services.
■ Authentication – Verifying that the
expensive WAN equipment and complex parties on the other end are who they
VPNs – an excellent WAN
WAN link management. Most ISPs offer claim to be
solution today
services that include the management ■Privacy – Ensuring that transmitted
For many businesses, the speed and
of the WAN connection between the content isn’t read or intercepted by
quality of Internet services are more
company and the ISP’s POP. The ISP unauthorized recipients
than adequate to meet their WAN
typically manages all the other connec- ■Integrity – Verifying that transmitted
communication needs – especially
tions “upstream” from that point. So data is received unchanged
considering the potential cost savings.
as a company’s bandwidth needs grow,
Current limitations for business use Many solutions offer security
its only points of concern are the indi-
of the Internet apply primarily to high- technology to make Internet VPNs
vidual links between its sites and the
bandwidth, time-sensitive transmissions, a viable option today. (These solutions
ISP POPs. The ISP is responsible for
such as audio, video and real-time data are discussed later in this paper in the
meeting scalability requirements, and
bases. Even for companies employing section titled “Alternative Solutions.”)
also for upgrading or reconfiguring
such applications, it may be highly
upstream equipment to take advantage Strong security with
beneficial to establish Internet VPNs Intel Express Routers
of new developments in networking
for their less demanding applications.
technology. Intel Express Routers offer powerful
(For more information on quality
security for Internet VPNs and other
Integration of applications onto a of service and bandwidth issues, see
WAN traffic. Encryption using the
common platform and infrastructure “The Future of VPNs” at the end of
Blowfish algorithm and a 144-bit
Cost savings can also be realized by this paper.)
encryption key is an optional feature
consolidating applications onto the
available for all Intel Express Routers.
common Internet-based networking Security over This is some of the strongest encryption
infrastructure. For example, rather than the Internet technology available today, and forms
needing one ISP connection for Internet For many businesses considering the the basis for secure tunneling over the
email and another ISP connection for a Internet as their WAN communications Internet using Intel Express Routers.
private WAN link, a single connection can medium, a lingering concern is security. Because each Internet tunnel is set
be used for both. In the future, the same They need to know that their private up as a virtual WAN link, different
Internet connection and VPN could also networks are not at risk from unautho- encryption keys can be used for
be used to provide mobile employees rized users and that their private business each tunnel.
and teleworkers with secure remote LAN data is secure as it crosses the public

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Internet VPNs it must dial-up the receiving site in order Easy transmission via any ISP
with Intel Express to complete the connection. Not all ISPs Once the tunnel is configured, all LAN
Routers offer this service. Second, both the traffic that is routed to the WAN is
Setting up links to ISPs sending and receiving sites must have first encrypted and encapsulated in the
fixed IP addresses. Many ISPs offer TCP/IP protocol. The traffic is then
Configuring secure VPN tunnels over
this as an option for business Internet re-encapsulated in whatever WAN
the Internet using Intel Express Routers
accounts, but don’t offer it for consumer protocol is being used on the WAN
is exceptionally easy. However, depending
dial-up accounts. link to the ISP (PPP, Frame Relay, X.25,
on the particular circumstances of the
customer’s business and LAN config- Once the WAN link to the ISP etc.). With this second encapsulation, the
uration, appropriate steps should also POP has been established, all future traffic is indistinguishable from any other
be taken to ensure the security of the links can then be configured as tunnels traffic crossing the link. It can therefore
LAN from the Internet. This should over the Internet WAN port. Link options travel as easily as standard Internet traffic.
minimally include configuring access such as compression and encryption ISPs don’t have to perform any special
control lists via protocol filters, but can be enabled and any LAN protocol configuration of their equipment. And
could also include more sophisticated filtering can be specified. Then users since it’s encrypted, all data, even the
measures such as multiple routers and need only enter the IP address of the original source and ultimate destination
standalone firewall servers. router at the target site and enter the addresses, are completely hidden from
same encryption key on both ends. A potential hackers.
The first step in creating a secure VPN
different encryption key can be used for Tunneling with Intel Express
with Intel Express Routers is to establish
each tunnel for further security. Figures 4 Routers can be implemented with any
an Internet connection for each LAN.
and 5 show a comparison of a traditional networking application over a typical
This is a traditional WAN connection,
WAN setup over a Frame Relay network Internet connection. Companies don’t
but typically much less expensive because
versus an Internet VPN. have to modify applications or add any
it is a short distance connection to a local
ISP POP.

Once the physical connection is Traditional LAN-to-LAN connections over Frame Relay
made, a WAN link must be configured to
connect the router to the ISP’s POP. For IP, IPX or Bridged LAN
traffic encapsulated in PPP,
Site A Frame Relay or X.25
permanent dedicated connections, this
is a simple, standard link. It requires Router
no special configuration of routers at
the local ISP POP other than being
configured as a static route with fixed Public Switched
Data Network – Router
IP addressing. PSDN (TELCO)
Site B
When creating an Internet VPN over
a dial-up link, such as ISDN, there are
two additional considerations. First, when Site C
the local ISP at the receiving end of the Long distance Private WAN link
(PPP, Frame Relay or X.25)
communication receives the transmission,
Router

Figure 4. At each site, a router port is connected to the Frame Relay service, and then a virtual link is
configured to each of the remote sites.

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specialized software to their LANs. The Alternative in the router requires no additional
simplicity and interoperability designed Solutions investment for the end customer. And
into the Intel Express Routers make With such desirable cost savings, numerous since the traffic over the Internet is
them perhaps the easiest solution avail- VPN solutions are being proposed from standard, it requires no special configura-
able today for secure LAN-to-LAN a variety of sources. VPNs can be imple- tion or incremental equipment investment
connectivity over the Internet. mented in a number of different ways. for the Internet Service Provider.
Tunneling LAN protocols Although each solution has its merits and Not surprisingly, other router vendors
and filtering shortcomings, Intel believes that the router agree and have announced their intentions
All LAN protocols and filtering is the best solution for LAN-to-LAN to support VPNs and secure Internet
supported by Intel Express Routers connectivity – for both the end customer tunneling as Intel has done.
on a traditional WAN link can also be and the Internet Service Providers.
Application software developers
supported over a tunnel. Given the Router vendors and operating systems
bandwidth constraints on the Internet,
Because routers are designed for LAN- Some software developers are building
it’s especially important to minimize
to-LAN connectivity through a WAN, proprietary, secure Internet tunneling
excess traffic with the Express Router’s
providing LAN-to-LAN connectivity over capabilities right into their applications.
WAN cost control features such as
an Internet VPN is a natural extension However, most companies use many
controlled bridging, IPX filtering and
of their basic function. A router is applications from different vendors.
spoofing, IP filtering and triggered RIP.
required for a LAN connection to the Because of this, proprietary VPN
Internet anyway, so adding VPN support implementations can quickly create
administrative headaches and require
multiple logons and passwords that are
LAN-to-LAN connections via Virtual Private Network over the Internet difficult for users.

Network Operating System developers


Site A
Intel are also looking to enable VPNs within
Express Router
Site B their security infrastructures. To the
extent that a company is using the same
operating system everywhere, this may be
Traditional WAN
connection to
an acceptable solution, but will generally
local ISP POP (PPP, require either a dedicated server or
ISP POP
Frame Relay, X.25) ISP
POP significant resources on a shared server
Public Intel
Internet Express Router
to implement. If multiple operating
systems are in use, which is the case in
ISP POP
most companies, then it has the same
Secure Internet Tunnel: shortcomings as the application-based
Encrypted, compressed
LAN traffic (IP, IPX, implementations.
bridged protocols)

Site C
Intel Express Router

Figure 5. At each site, a router port is connected to the Frame Relay service and a “real” link is configured
to the ISP POP. Then a virtual link, or tunnel, is configured to each of the remote sites.

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Firewall or dedicated devices VPN Implementation Options


Firewalls were the first product category
Solution Pros Cons
to implement VPN solutions. Since most Application-based or ■ These types of solutions ■ Require more complex setup
business connections to the Internet operating system-based may provide VPN security and configuration of applications,
solutions using a common user login network security or remote
include a firewall, they might seem an ■ PPTP provides support access servers at each site
ideal place to implement VPNs. But for remote LAN access ■ Applications and/or operating
applications systems would likely have to
firewall-based VPN solutions haven’t be upgraded to take advantage,
caught on with end customers for several adding significantly to imple-
mentation costs
key reasons. Firewalls are generally
ISP-based solutions ■ Because these solutions ■ Because these solutions are
IP-based and don’t provide a means are typically still private typically still private WANs,
WANs, they offer better the cost savings compared to a
of handling other LAN protocol traffic. QoS guarantees traditional private WAN through
Many firewall-based solutions also ■ ISP can be paid to a telecommunications carrier are
configure and manage not substantial
require per-user licensing, which can everything for the ■ Customer depends on the ISP
get very expensive. customer to make changes or additions to
the private WAN configuration
Dedicated devices or black boxes that ■ Require more complicated
configuration of customer
encrypt data are also available. They are premises router equipment
generally designed to fit seamlessly into
Firewall-based solutions ■ Some offer support for ■ Most don’t support LAN protocols
the network, but can be a costly and both LAN-to-LAN other than IP
networking and client-to- ■ Require more complex setup
somewhat redundant investment. Their LAN remote access and configuration of firewall at
tunneling capabilities are similar to those each site
of Intel Express Routers but they don’t
■ Charges for some are on a per-
connection basis, resulting in a
offer WAN connectivity or routing. much more expensive solution
Figure 6 summarizes the advantages
■ May require separate log-on
process for users
and disadvantages of these alternative
Other router-based ■ L2TP, for example, will ■ Customer depends on the ISP
VPN solutions. solutions eventually become an to make changes or additions
interoperable standard to private WAN configuration
The Internet VPN solution offered protocol ■ Require more complicated
by Intel Express Routers is simple configuration of customer
premises router equipment
and elegant. Since it is implemented in ■ Some depend on adoption
the router, it provides cost savings and of new protocols throughout
Internet infrastructure, delaying
management efficiencies for the end immediate practical use
customer. And since it doesn’t require
Figure 6
any changes in the LAN applications
that the customer is using, or in the ISPs
network configuration, there are virtually
no barriers to implementation.

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The Future Quality of Service (QoS) RSVP offers a standard means of


of VPNs Because administration of the Internet obtaining known, guaranteed bandwidth
Tunneling with Intel Express Routers is a shared responsibility – and the over IP network infrastructures. A recent
offers businesses a simple and cost- network itself is a shared resource – study by Infonetics Research predicts that
effective solution for Internet VPNs today, service providers can’t offer any the number of ISPs using RSVP will grow
but it’s only the first step. As standards for guarantees today with respect to latency from 4 percent in 1997 to 24 percent in
secure Virtual Private Networking on the or throughput over the Internet. The 1998. (Source: Infonetics Research Inc.,
Internet are formalized, Intel will integrate connection from one point to another “The ISP Opportunity 1997,” page 15.)
support for them into its routers. Since doesn’t follow a set path and, like a chain, Several Intel Express Router models
tomorrow’s innovations are built on today’s is only as good as its weakest link. already include support for RSVP, as
standards, this compliance will offer well as IP Multicast V2.
This shared ownership of the infra-
companies optimal flexibility in choosing structure is both the strength and the Bandwidth
the best future technologies to meet their Achilles heel of the Internet. It’s Although the term “high-bandwidth”
specific needs. responsible for much of the growth is used to describe Internet connections
The next important step for Internet and vitality of the Internet as a such as T1, the 1.5Mbps that a T1 con-
VPNs is providing simple and secure popular medium. But it also means nection offers is minuscule compared
LAN access for remote users working that overcoming QoS limitations will to the 10Mbps and 100Mbps Ethernet
from home or on the road. Proposed most likely require technical changes connections enjoyed on local area
standards, such as L2TP, hold great throughout the massive Internet networks. This disparity represents a
promise for allowing Remote LAN infrastructure. However, the outlook significant bottleneck when establishing
Access (RLA) via an Internet VPN. is good. Business and consumer demand an Internet VPN or a private WAN. The
for improvement is so high that service technology to upgrade the infrastructure
As mentioned, the Internet already
providers and key technology vendors exists, but the enormous cost of upgrading
offers substantial benefits as a medium
are working cooperatively and or changing the infrastructure of a net-
for WAN communications. But unleashing
aggressively to develop solutions. work the size of the Internet poses a
its full potential will require solutions to
daunting challenge.
two major limitations. First, the quality QoS over the Internet can be
of service (QoS) available over the improved in many ways. Some ISPs Typically, the bottleneck occurs at
Internet must be improved to handle offer what are essentially private WANs the “last mile” – the connection from
time-sensitive applications, such as that simply run on the same equipment a carrier or service provider to the
audio, video and real-time data base as their Internet traffic. However, the consumer or business location. The
applications. Second, higher bandwidth typical cost is almost as high as a best hope for improving the bandwidth
services must be available over the traditional private WAN. of these connections lies in new, cost-
Internet in order to offer a truly seam- effective last-mile solutions such as
A number of companies in the
less interface between the LAN and the xDSL, cable or wireless technologies.
networking industry have come up with
WAN. Intel is playing an active role in With increasing deregulation of tele-
a more comprehensive and cost-effective
addressing technical issues in each of phony services, many diverse solutions
solution. Cisco Systems Inc., Intel,
these areas. The ultimate solutions to that address the varying needs of
Microsoft and several major carriers
these problems will require a major business and consumer applications
and ISPs are playing a leadership role
overhaul of the infrastructure itself – are likely to emerge.
in an industry initiative to establish the
a change that will come only with bandwidth reservation protocol (RSVP).
evolution of the entire Internet.

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Because of the enormity of the Conclusion Intel is also working to drive a range of
problem, significantly higher bandwidth The common infrastructure offered by industry-wide efforts to meet tomorrow’s
for local access may take many years to the Internet promises to radically improve challenges, such as interoperable standards
proliferate. But the need for Internet the ease and affordability of WAN for security, quality of service and low-cost
VPN solutions today is spurring many communications. Already, VPNs with high-bandwidth communications services.
creative ways to make the most efficient Intel Express Routers offer an important With these developments, the solution
use of the Internet bandwidth that is first step by safeguarding the privacy of currently offered by Intel Express Routers
available. These include compression, business communications as they traverse and secure Internet VPN’s will expand
filtering and prioritization techniques the public infrastructure. By enabling readily into the future, moving toward
used in both WAN and Internet access the Internet to be used as a low cost the next era of WAN communications.
products such as Intel Express Routers. alternative to a private WAN, Intel
Because of the demand for higher Express Routers provide a simple means
bandwidth and better QoS for VPN of saving money today. And as part
applications, many carriers and of a coordinated, long-term Internet
ISPs are already making significant strategy, they help lay the groundwork
investments in their network infra- for the future of network applications.
structures to offer better baseline Since a complete WAN solution often
services. This is an expensive requires more than Internet VPNs, Intel
approach to solving the problems, Express Routers also support multiple
but it is effective and immediate. protocols for traditional WAN routing
Support for new, higher-performance, in a global networking environment.
last-mile telecommunications technologies With intuitive management tools and
such as xDSL and new QoS technologies comprehensive support for strong security
such as RSVP will further enhance the and cost-control, they provide a flexible,
Internet as a common networking infra- secure and cost-effective WAN solution.
structure. As these and other solutions
begin to proliferate through the Internet
infrastructure, the potential of the Internet
for WAN communications will continue
to grow. Intel will continue playing a
leadership role in this effort.

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