Q4. What role can a VPN play in Business-to-Business e-commerce?

Answer:

B2B e-commerce may always need to build a physical connection from Business to Business. For instance, there is a T3 leased line connection between a Manufacturer and a wholesaler. Although this method is very expense, it provides a very secure communication. VPN makes use of Internet to build a virtual circuit as if the physical connection. For example, the wholesaler connecting to Internet through broadband sets up a VPN server. Then, the Manufacturer installs the related VPN clients so that the virtual circuit can be built. The virtual circuit operates as if the physical connection did. The role of VPN in e-commerce is to offer virtual circuits rather than expense lease lines. VPN is cost-saving.