The world of work is increasingly virtual. This virtual world has nothing to do with the Metaverse. Virtual security and hosting tools are boosting security, improving performance, and lowering costs worldwide.

This article will look at three critical virtualization technologies: virtual private clouds (VPC), virtual private networks (VPNs), and virtual private servers (VPS).

All three technologies go beyond legacy systems, delivering significant advantages to modern companies. But businesses need to use them correctly. Let’s explore what each virtual tech offers and how they work together to improve security and productivity.

What is VPC and how does it work?

VPC stands for “virtual private cloud.” A virtual private cloud is a cloud environment designed for use by a single organization.

VPCs reside on standard cloud services. However, cloud vendors use logical segmentation and access controls to create a watertight barrier between public and private cloud resources.

VPCs are like private offices on the cloud, secured by multiple locks and entrance protections. Users following VPC best practices enjoy many benefits compared with standard cloud computing features.

VPCs have low maintenance and installation overheads. They are easy to scale, flexible, and reliable. Cloud resources also work well with remote access workforces, making virtual workloads available wherever users are.

VPCs deliver enhanced security to complement these features. Segmentation cuts the risk of intrusion via the public cloud and limits data breach risks. Users can assign IP addresses to subnets and route tables to calibrate access controls. Encryption and firewall settings safeguard data, helping businesses meet compliance goals.

From the user’s perspective, VPCs are like traditional on-premises networks. Users connect to applications, send data, and work normally. Behind the scenes, cloud technologies offer scalability, customization, and security not provided by legacy networking.

There are also similarities when we compare virtual private cloud vs. private cloud deployments. The difference is that VPCs reside on shared public cloud resources. You don’t need a specific private cloud infrastructure—just part of the existing cloud. Sharing cloud space cuts costs dramatically.

What is a VPN and how does it work?

VPN stands for Virtual Private Network. VPNs route internet traffic through a private VPN server. The VPN server creates encrypted tunnels to transmit user data. They also assign anonymous IP addresses—effectively concealing network traffic from outsiders.

This technique creates a virtual network over the public internet. Users can send or receive data through their private network without exposing files and data to malicious actors.

VPNs also suit remote access. Employees can install VPN clients on remote devices or laptops and instantly create a VPN gateway to on-premises or cloud-hosted resources. All users need is a virtual private network client and an internet connection. There’s no need for extra hardware.

What is VPS and how does it work?

VPS stands for “virtual private server.” A VPS is a virtual machine installed on a physical server or group of servers. The VPS shares server space with other resources and traffic. Similarly to a partitioned portion of a physical server, users have a dedicated virtual server within that environment.

Companies often use virtual private servers for web hosting. Virtual servers offer greater security than traditional shared server space. Greater processing capacity also usually results in performance improvements.

VPS hosting also scales easily. Companies order additional capacity as needed, with no need to install or maintain server hardware. Virtualization also adds customization options. Users control every aspect of the server environment, including CPU and memory usage, app installations, and the operating system.

These features make VPS technology increasingly popular among small businesses with high growth potential. Small enterprises can lower operating costs, simplify their workload, and scale server capacity as their needs expand.

VPC vs. VPN vs. VPS: differences

One way of visualizing the differences is to Imagine a typical city, just like your own.

VPCs are like gated neighborhoods in the city. People can enter if they have the right credentials, but public access is blocked. VPS are homes in that community, serving local people. Finally, VPNs act like protected access roads. They ensure only the right people can approach the neighborhood and those who live there.

That’s obviously just an analogy. As we will see, things are a bit different in network environments.

VPN

• Role: Creates a secure connection for data transfers
• Usage: Enables users to establish secure remote connections
• Scaling: Well-suited to individual remote access
• Management: Users have limited configuration options
• Adaptability: Generally limited customization, limited to basic security

VPC

• Role: Provides private cloud capacity within the public cloud
• Usage: Flexible and secure hosting for cloud applications
• Scaling: Scales naturally as companies expand
• Management: Users have extensive powers to adapt their VPC deployment
• Adaptability: Users can toggle network configurations

VPS

• Role: Supplies virtual machines instead of physical servers
• Usage: Dedicated and secure server capacity without high overheads
• Scaling: Easier to scale than traditional servers
• Management: In-depth server control (depending on the vendor)
• Adaptability: Plenty of configurable server settings

VPS, VPNs, and VPCs are different but inter-linked technologies. As the table above shows, they have different purposes and customization potential. Knowing how they differ makes it easier to understand how all three technologies fit into network environments.

• VPC vs. VPN: The main difference between VPCs and VPNs is that VPNs create secure network connections over the public internet. VPCs enclose resources in a private domain with a larger cloud environment. We can use VPNs to safely access VPCs without exposing data.
• VPC vs. VPS: The main difference between VPCs and VPS is that VPCs host cloud resources and use the cloud vendor’s server resources. VPSs are virtualized servers. They provide dedicated server resources for clients, often within VPC environments. Users can also combine multiple VPS within a VPC.
• VPN vs. VPS: The main difference between VPNs and VPS is that VPNs enable secure access to cloud resources or the public internet. VPSs are used to host resources, including public-facing websites, databases, or remote access workloads. VPNs help secure access to VPS and VPC deployments.

What features are shared by VPN, VPC, and VPS technologies?

The functions of VPNs, VPCs, and VPS differ, but the technologies often work together in secure cloud computing systems. As such, they share features that characterize cloud resources in general.

As the “V” suggests, all three technologies use forms of virtualization to carry out their duties. Virtualization simulates hardware or software. Resources reside on shared infrastructure, providing dedicated virtual security or hosting services.

Virtualization supports flexible remote access. VPNs, VPS, and VPCs are available to globally distributed users. Users can access servers or virtual private network gateways via any internet connection. This suits remote workforces and provides flexibility for network admins.

Security is another common feature of VPNs, VPCs, and VPS technology. A VPN server uses encrypted tunnels and IP address anonymization. VPC security employs segmentation and access controls. VPSs create dedicated secure environments for server hosting.

Alongside security comes enhanced privacy. VPNs create private network gateways. Users do not share internet infrastructure when accessing sensitive data. VPCs separate business resources from the public cloud, creating private zones. VPS is similar, offering private servers with no direct connection to other shared infrastructure.

Tips on choosing the right solution

The key takeaway of this article is that we should view VPNs, VPCs, and VPS as part of a wider picture. They are different but closely related technologies. The “right” solution often involves two or three components.

The critical task is deciding when to use each technology. The table below provides some pointers. However, always consider your business needs before selecting which virtualized tools to use.

• When you need VPC. VPCs are used to create secure environments for confidential data. With a VPC, you have complete control over access. Subnets, access control lists, and firewalls determine who can access resources. You can set privileges for different roles according to the principle of least privilege and separate data from public cloud users.

VPCs are a good option for organizations comparing a private vs public cloud solution. In that case, you could opt for expensive private cloud systems. VPC offers a secure and user-friendly middle ground that suits most modern businesses.

• When you need a VPN. VPNs are ideal for establishing a secure remote access connection. They suit companies with large home-based workforces. A virtual private network should secure connections between many offices or work locations and also create a protected gateway between work devices and cloud endpoints.
• When you need VPS. VPS suits companies that need dedicated server capacity without excessive expenditure. VPS cuts costs by leveraging virtualization and shared infrastructure. A virtual private server is also easier to customize than standard shared hosting, enabling bespoke deployments.

How NordLayer’s Business VPN can secure access to VPC environments

NordLayer makes it easier to secure virtual private cloud deployments. With our tools, you can create secure access systems to block unauthorized intruders and enable smooth workflows for legitimate users.

Our Business VPN enables small and medium-sized companies to create private gateways between remote workers and VPC or VPS resources. End-to-end encryption protects data flows and user credentials, allowing secure file transfers and guarding cloud endpoints.

NordLayer’s site-to-site secures access to hybrid networks, including VPCs. It enables secure remote access for employees across the world.

NordLayer also enables users to enforce strong network access control policies. Our NAC solutions ensure that only authorized individuals can access VPCs. Cloud firewalls segment access by identities, while device posture security only allows access for compliant devices. Choose a simplified but powerful security solution for virtualized resources. To find out more, contact the NordLayer team today.

According to IBM’s 2024 Cost of a Data Breach Report, the global average cost of a data breach has surged to $4.88 million, a 10% increase from the previous year. This was the largest annual jump since the COVID-19 pandemic.

Traditional security models, which rely heavily on perimeter defenses, are no longer enough to handle today’s sophisticated cyber threats. Malicious actors and insiders can easily bypass these defenses, exploiting outdated systems to gain unauthorized access to sensitive data.

This is where the Zero Trust maturity model comes into play. It offers a modern approach to security, shifting from the outdated “trust but verify” mindset to the more robust “never trust, always verify” principle. The Zero Trust maturity model provides a framework that helps organizations implement this advanced security in stages.

By assessing your organization’s place within the model, you can enhance your defenses, safeguard sensitive data, and stay ahead of evolving cyber threats.

What is the Zero Trust maturity model?

The Zero Trust maturity model is a strategic framework that helps organizations gradually shift from traditional perimeter-based security methods to a more comprehensive Zero Trust approach. Unlike older models that assume trust within the network, Zero Trust requires continuous verification of all users and devices, regardless of their location.

This model provides a clear roadmap for assessing an organization’s cybersecurity posture, outlining stages to improve security protocols over time. It emphasizes verifying users, devices, and data access at every level to effectively counter threats, both external and internal.

The stages of the Zero Trust maturity model

The Zero Trust maturity model breaks down the process of adopting Zero Trust principles into several stages. Each stage represents a different level of security preparedness and implementation. Let’s take a closer look at these stages:

1. Initial/Ad-hoc stage

At the initial stage, security measures are primarily reactive rather than proactive. Organizations may not have formal Zero Trust policies yet. While multi-factor authentication (MFA) might be used inconsistently, organizations often rely on perimeter-based security like firewalls and VPNs. Security practices tend to be inconsistent, with minimal internal monitoring. Once inside the network, trust is often assumed rather than verified.

Key characteristics:

• Multi-factor authentication (MFA) may be in place but not consistently enforced
• Minimal network segmentation
• Lack of visibility into internal traffic
• No consistent identity verification
• Limited control over device access

2. Developing/Basic stage

In the developing stage, organizations start to recognize the need for stronger security measures. They consistently enforce multi-factor authentication across all tools handling sensitive information. This phase marks the early implementation of Zero Trust principles, focusing on critical areas such as identity management and access control. Security policies are still evolving, but there is an increasing emphasis on monitoring and segmentation.

Key characteristics:

• Consistent enforcement of MFA across all critical systems
• Basic identity management in place
• Limited monitoring of user activity
• Partial implementation of access control policies
• Introduction of network segmentation

3. Defined/Intermediate stage

At the defined stage, the organization has implemented clear security policies that align more closely with the Zero Trust framework. Role-based access control (RBAC) and device management have become integral parts of the security structure. Internal monitoring is more robust, leading to a clearer understanding of who has access to what resources.

Key characteristics:

• Established Zero Trust security policies
• Role-based access control
• Centralized identity management
• Regular network traffic monitoring
• Secure device management

4. Managed/Advanced stage

At the managed stage, organizations have integrated advanced security technologies and processes. All network activity is continuously monitored and logged, and security incidents are detected and responded to using automation. The Zero Trust principles are now consistently applied across the entire infrastructure, reducing the risk of unauthorized access or lateral movement within the network.

Key characteristics:

• Full identity and access management (IAM)
• Automated incident detection and response
• Detailed auditing and reporting
• Comprehensive device posture management
• Continuous network and resource monitoring

5. Optimized/Strategic stage

At this final stage, Zero Trust architecture is deeply embedded into the organization’s culture and systems. Security is automated and adaptive, using machine learning and artificial intelligence to predict and prevent threats. Zero Trust is applied to every aspect of the organization, from user identity to applications and data.

Key characteristics:

• Automated Zero Trust principles across all systems
• Predictive security measures using AI/ML
• Fully adaptive and scalable security practices
• Minimal manual intervention is needed
• Continuous improvement through audits and reviews

How to assess your organization’s Zero Trust maturity

Understanding your current Zero Trust maturity level is crucial for making informed decisions about future security strategies. Here’s how to assess where your organization stands:

1. Evaluate your security policies: Do you have consistent, clearly defined security policies? Are they aligned with Zero Trust principles, such as “least privilege” access and continuous verification?
2. Examine access controls: Look at how access is granted across your network. Are all users, devices, and applications authenticated before they can access sensitive resources?
3. Monitor network activity: Are you continuously monitoring traffic within your network, and can you detect anomalies quickly? Real-time visibility is a critical aspect of Zero Trust maturity.
4. Review identity management: Ensure that you have robust identity verification protocols in place, including multi-factor authentication and role-based access control.
5. Assess automation: The higher levels of the Zero Trust maturity model require automation for threat detection and response. Consider how much of your security operations can be automated.

Benefits of Zero Trust maturity

Reaching a higher level in the Zero Trust maturity model brings numerous benefits that extend beyond just improving security—it also enhances overall operational efficiency.

One of the primary advantages is the reduced risk of breaches. Verifying every user and device at each access point greatly lowers the chance of unauthorized access. This constant verification creates a more secure environment and helps prevent breaches before they occur.

Another key benefit is enhanced visibility. Continuous monitoring of network traffic and internal activities gives organizations real-time insight into their systems. This enables them to quickly detect anomalies and respond to potential threats before they escalate into serious security incidents.

A mature Zero Trust framework also promotes better compliance with industry regulations. In sectors with strict data security laws, ensuring that your organization meets legal requirements is essential. Zero Trust helps keep your security practices aligned with these regulations, reducing the risk of compliance violations.

Lastly, improved user experience is a notable advantage. Contrary to the belief that tighter security might hinder usability, Zero Trust solutions are designed to authenticate users smoothly. This provides a seamless experience for authorized users while maintaining the highest level of security.

Challenges of the Zero Trust maturity model

Adopting the Zero Trust maturity model is not without its challenges. Here are some common hurdles that organizations face:

• The complexity of implementation: While moving from a perimeter-based approach to Zero Trust may seem complex, it doesn’t have to be. The challenge often arises when organizations attempt to implement various solutions for different Zero Trust policies. However, choosing a comprehensive solution like NordLayer, which is cloud-based, compatible with hybrid networks, and offers a strong ZTNA framework, can simplify the process.
• Resource demands: Implementing Zero Trust architecture can require time, money, and expertise. While there are upfront costs, selecting a smart, comprehensive solution pays off over time, especially considering the potential financial damage from security breaches.
• Cultural resistance: Changing the security culture within an organization may meet resistance, as employees could see new policies or technologies as obstacles. This is why it’s crucial to adopt simple, intuitive solutions that make it easier for everyone to accept changes.
• Legacy systems: Some organizations still rely on legacy systems that may not be fully compatible with modern Zero Trust principles, which can make complete implementation challenging.

By understanding these challenges and taking a strategic approach, organizations can overcome them and create a robust Zero Trust architecture that evolves alongside digital threats.

How NordLayer can help

NordLayer’s Zero Trust solutions equip your organization with the essential tools to safeguard data and resources effectively. They make it easy to navigate the complexities of the Zero Trust maturity model. Whether you are just beginning to adopt Zero Trust principles or looking to optimize an existing framework, our scalable and secure solutions support you at every stage.

• Secure remote access: Implement secure remote access policies with Site-to-Site VPN and Smart Remote Access to ensure smooth, encrypted connectivity for your distributed teams.
• Granular network access control: Gain precise control over your network with Virtual Private Gateways, Cloud Firewall, and Device Posture Monitoring. This allows you to ensure that only the right people—or secure devices—can access sensitive network resources.
• Multi-layered authentication: Strengthen authentication practices with additional multi-factor authentication and biometric checks. You can also set custom session durations to ensure frequent re-authentication, making access more secure.
• Comprehensive monitoring & logs: Stay informed of who and what is accessing your network with Session and Device Connection Monitoring Logs. These tools provide visibility into every device and user, ensuring full network transparency.
• Advanced security features: NordLayer offers Device Posture Security, behavioral analysis, and automated threat detection to help protect sensitive resources while maintaining seamless access for authorized users.