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VPN gives extremely secure connections between private networks linked through the Internet. It allows remote computers to act as though they were on the same secure, local network.

Advantages

Allows you to be at home and access your company's computers in the same way as if you were sitting at work.
Almost impossible for someone to tap or interfer with data in the VPN tunnel.
If you have VPN client software on a laptop, you can connect to your company from anywhere in the world.

VPN goes between a computer and a network (client-to-server), or a LAN and a network using two routers (server-to-server). Each end of the connection is an VPN "endpoint", the connection between them is a "VPN tunnel".