Privacy is increased with a VPN because the user's initial IP address is replaced with one from the VPN provider. This method allows subscribers to attain an IP address from any gateway city the VPN service provides. A VPN network creates a secure connection over a public network i.e. the internet being one of the most important requirements of daily lives. The encryption for such a connection is provided by using algorithms for having security and the establishment of a reliable connection which is not possible in the case of a proxy server. There are a number of VPN protocols in use that secure the transport of data traffic over a public network infrastructure. Each protocol varies slightly in the way that data is kept secure. Thus VPN provides an encrypted and secure connection tunnel path from a user's machine to its destination through the public Internet.

The use of advanced authentication & encryption protocols in VPN not only prevents illegitimate access of transmitted data but also provides highest level of security. There is more complicated data encryption technology such as SSL but it can’t be used everywhere. But VPN is free from any such restriction & offers more resilience while trying to meet the company’s data sharing requirement.