Virtual Private Networks – Pt.3

Our last two blogs in the series reviewed the concepts of what a Virtual Network Private Network is, and how it can work for your small business or corporation. But truth to be told, the deployment of a VPN can be, to a certain degree be a costly proposition. Thus, conducting a Benefit-Cost Analysis becomes important, and in this blog, we examine some of the key points that needs to be examined in this regard.

Conducting A Virtual Private Network Cost Benefit Analysis

As the business owner, you first need to determine if you even have the funds needed to acquire a VPN solution.  The key financial questions to be asked and analyzed include the following items:

  1. Determine your actual operating costs to run your current IT infrastructure;
  2. Calculate the real and the tangible benefits that the Virtual Private Network solution will bring to your business or organization as opposed to your existing IT security infrastructure;
  3. Calculate the capital requirements as well as the operational costs of the new Virtual Private Network solution;
  4. Spread the financial costs of the estimated life of the new Biometric based Virtual Private Network solution, but, it is most important to assign the capital expenditure costs to the specific years;
  5. Ascertain and determine the cost differences between the operating costs of the existing security system in place, and the brand new Virtual Private Network solution;

Based upon the financial numbers calculated above, now you can easily calculate the Return on Investment, or ROI, as well as the Internal Rate of Return, or IRR, of the Virtual Private Network solution, as well the as the Net Present Value.  If both of the key financial statistics reveal a positive number, then the Virtual Private Network is definitely worth at least considering acquiring.

Now, with the above key financial questions solidly answered, you can now conduct the true Benefit Cost Analysis, and this should include the following components:

  1. All of the costs which are associated to keep the Virtual Private Network running and the associated upkeep costs;
  2. All of the capital expenditures related to the lifetime of the Virtual Private Network Project;
  3. The actual costs of hiring and keeping the employees to maintain the VPN system;
  4. The calculations of the new revenues that the Virtual Private Network system will bring to the place of business or organization;
  5. Any other hidden costs it will take to implement the new VPN system;
  6. Any other IT Budget cost savings which can be garnered by the new VPN system.


It is also important to keep in mind to stay from what is known as the “scope-creep” phenomenon.  In other words, just implement the VPN system for the purposes it was intended to do, and not any more.

Otherwise, your operating costs will get greatly out of hand, in other words, the rules of IT project management must be strictly enforced.  Once you have discovered through the above processes detailed above, that a Virtual Private Network solution is best for your place of business or organization, you must follow a very orderly approach in deploying the VPN system.  This will be the focal point of our next blog.