VPNs for Business: Do You Need One and How Do They Work?

VPN — More Than Just for Streaming

VPN stands for Virtual Private Network. You might have heard of VPNs in the context of streaming content from other countries or browsing privately at home. But for businesses, VPNs serve a different and more important purpose: they create a secure, encrypted connection between a user's device and your business systems — even when that user is working from home, a café, or anywhere else outside the office.

With more Australian businesses embracing remote and hybrid work, VPNs have become a relevant consideration for businesses of all sizes. But they're not necessarily right for everyone. This guide helps you understand what a VPN does, when you need one, and what to consider when choosing one.

What Does a VPN Actually Do?

When you use a VPN, it creates an encrypted "tunnel" between your device and a VPN server. All your internet traffic flows through this tunnel, which means:

• Anyone on the same network (like a public WiFi hotspot) can't intercept and read your data
• Your internet service provider can't see the content of what you're doing online
• If the VPN connects to your business network, remote workers can access internal systems as if they were in the office

Think of it like an armoured car transporting valuables. Even on a road full of other vehicles (the public internet), the contents of the armoured car (your data) are protected because nobody can get inside.

Business VPNs vs Consumer VPNs

It's worth distinguishing between two different types of VPN:

Consumer VPNs

Services like NordVPN, ExpressVPN, and Surfshark are designed for individuals. They route your traffic through the VPN provider's servers, masking your location and encrypting your connection. They're useful for privacy and accessing geo-restricted content, but they're not designed for connecting remote employees to business systems.

Business (or corporate) VPNs

A business VPN is typically a server (or service) that your business controls, which remote employees connect to in order to securely access internal systems. When an employee's device connects to the business VPN, they can access internal file servers, business applications, and other resources as if they were sitting in the office — with all traffic encrypted in transit.

Business VPN solutions include Cisco AnyConnect, Fortinet FortiClient, and cloud-based options like Cloudflare Access or Tailscale, which can be simpler to set up and manage for smaller businesses.

Does Your Business Actually Need a VPN?

The honest answer is: it depends on how your business operates. Consider the following scenarios:

Your business runs mostly on cloud applications

If your team uses Microsoft 365, Google Workspace, Xero, or similar cloud-based tools, your data is already encrypted in transit using HTTPS — the same technology that secures online banking. In this case, a traditional business VPN may not be strictly necessary, though it still adds a useful layer of protection on untrusted networks. A cloud-based Zero Trust access solution might be a more modern and efficient approach.

Your business has on-premises servers or systems

If staff need to remotely access files on a server in your office, or connect to business applications that aren't cloud-hosted, a VPN is the recommended way to do this securely. Exposing those systems directly to the internet is a significant risk.

Staff regularly work from public WiFi

Cafes, hotels, airports, and coworking spaces often have unsecured WiFi networks. A VPN protects your staff's internet traffic in these environments, reducing the risk of data interception. Even if your business is fully cloud-based, a VPN adds meaningful protection when working on public networks.

You handle sensitive data

If your business handles health information, legal documents, financial records, or other sensitive data, the additional protection of encrypted VPN connections is worthwhile — particularly for remote access.

What to Look for in a Business VPN

If you decide a VPN is right for your business, here are the key factors to consider:

• Ease of use — staff need to actually use it; complex setup and connection processes lead to people bypassing it
• Scalability — can it grow as your team grows?
• Multi-device support — does it work on Windows, Mac, iOS, and Android?
• Strong encryption standards — look for solutions using AES-256 encryption and modern protocols like OpenVPN, WireGuard, or IKEv2
• Support and documentation — particularly important if you're managing it yourself without dedicated IT staff

VPNs Are Not a Silver Bullet

A VPN protects data in transit — it doesn't protect against malware on the user's device, phishing attacks, weak passwords, or unpatched software. If a remote employee connects to your business VPN from a device infected with malware, that malware now has access to your business network through the encrypted tunnel. This is why VPN use should be paired with endpoint security, MFA, and device management controls.

The Australian Signals Directorate (ASD) recommends that organisations using VPNs keep the VPN software and hardware up to date, use MFA for VPN access, and monitor VPN access logs for unusual activity.

Key Takeaways

• A VPN creates an encrypted tunnel for data in transit — protecting traffic from interception on untrusted networks
• Business VPNs differ from consumer VPNs — they're designed for secure remote access to business systems
• If your staff access on-premises servers remotely, a VPN is strongly recommended
• If your business is fully cloud-based, a VPN is still useful for staff working on public WiFi
• VPNs don't protect against all threats — they work best alongside MFA, endpoint security, and patching
• Keep VPN software updated and require MFA for all VPN access

Wondering whether your remote access setup is secure? The free cyber risk assessment at flagged.com.au covers remote access controls along with a range of other key security areas for Australian small businesses.