While working on an important project, sharing of sensitive information over the internet is common. But you wouldn’t just email it to anyone, right? You’d want to make sure that only the right person can access it—and that nobody can intercept it on the way. That’s exactly where VPN tunneling helps.
No, it’s not just a buzzword or some techie term to throw around. It’s a must-have for every business that wants to protect its data and keep its operations running smoothly, even with the growing cyber threats out there.

We’ll dive deep into VPN tunneling, what it is, how it works, why it’s essential for businesses, and what you need to look for in a solid VPN solution. Let’s break it all down so you can make informed decisions and secure your business like a pro.
What is VPN tunneling?
Definition of VPN tunneling
VPN tunneling is a secure method that allows businesses to transmit sensitive data over the internet safely. It creates an encrypted “tunnel” or pathway that encapsulates the data, protecting it from unauthorized access, hackers, or cyber criminals—even when using unsecured networks like public Wi-Fi. Think of it as a private, heavily guarded expressway where your data travels securely, shielded from any prying eyes.
How VPN tunneling works?
When a user connects to a VPN, the process begins with the creation of a virtual “tunnel” between their device and the VPN server. This tunnel serves as a secure, encrypted pathway for data transmission. Before leaving the user’s device, the data is first encrypted—transformed into unreadable code. It then travels through this tunnel, which protects it from interception or tampering by malicious actors.
Once the data reaches the VPN server, it is decrypted and forwarded to its intended destination. On the return path, the data follows the same secure process: it is encrypted as it leaves the server, travels back through the encrypted tunnel, and is decrypted on the user’s device. This continuous encryption and decryption ensure that any intercepted data remains completely unreadable and unusable to cyber attackers. By establishing this private channel, VPN tunneling maintains data confidentiality, integrity, and security throughout its journey across the internet.
The role of encryption in VPN tunneling
Encryption is the unsung hero behind VPN tunneling, making it a critical component for secure data transmission. It scrambles the data into an unreadable format before it’s sent out, and only the designated recipient, with the proper decryption key, can access it.
For businesses, encryption ensures the safety of sensitive information such as financial records, customer data, and intellectual property. Without encryption, there would be no guarantee of privacy, leaving crucial data exposed to potential threats.
What is VPN Split Tunneling? How Does it Work?
Let’s talk about Split VPN—a feature that’s like a power boost for businesses with specific network needs. VPN split tunneling is a sophisticated feature that lets businesses route certain traffic through an encrypted VPN tunnel, while other traffic bypasses the tunnel and connects directly to the internet.
This setup strikes the perfect balance between security and performance. For businesses that need to access sensitive internal resources securely, but also want fast and unrestricted access to the public web, Split VPN ensures both objectives are met without compromising either. It’s a smart way to optimize network performance while maintaining robust protection for critical data.

Types of VPN Tunneling Protocols
To transmit data securely, business VPNs use various tunneling protocols. These VPN protocols define how the data is wrapped and transported across the internet. Some of the most commonly used protocols include:
1. OpenVPN
A highly secure, flexible, open-source protocol often favored by businesses for its robustness.
2. IPsec (Internet Protocol Security)
This suite of protocols offers robust encryption and authentication for Internet protocol communications, making it a common choice for enterprise-grade VPNs.
3. SSL/TLS (Secure Socket Layer/Transport Layer Security)
These protocols are commonly used in web-based VPNs to secure data exchanges between browsers and servers, ensuring end-to-end encryption.
4. WireGuard®
A modern, lightweight VPN protocol designed for simplicity and high performance. WireGuard® offers faster speeds and improved security compared to traditional protocols, making it an excellent choice for businesses looking for efficient, scalable VPN solutions.
5. IKEv2/IPsec
A highly secure protocol that excels in maintaining a stable connection, even when users switch between networks. It’s particularly favored for mobile devices.
6. PPTP (Point-to-Point Tunneling Protocol)
Although outdated and less secure by today’s standards, PPTP is still used in some scenarios due to its speed and ease of setup.
7. L2TP/IPsec (Layer 2 Tunneling Protocol with IPsec)
This protocol pairs L2TP with IPsec to provide enhanced security and encryption, making it suitable for enterprises requiring extra layers of protection.
These protocols ensure the secure encapsulation and transmission of data, preventing unauthorized access during transfer.
Why VPN tunneling is critical for businesses
Protecting sensitive data
Sensitive business data is a treasure, and just like you wouldn’t leave cash lying around, you shouldn’t leave your data unprotected. VPN tunneling ensures that all your company’s critical information—like client details, financial records, and intellectual property—is shielded from prying eyes.
Enabling secure remote work
Remote work is here to stay, and with it comes the need to make sure your employees can access company systems safely, no matter where they are. VPN tunneling allows workers to securely connect to your business network from anywhere in the world, using any device. It’s like having a virtual office door that only they can unlock.
Guarding against cyber threats
Cyber threats are real, and they’re everywhere. Hackers, malware, and data breaches can strike at any time, and businesses need to be prepared. VPN tunneling creates a fortified defense by keeping malicious actors out of your network and making it harder for them to steal valuable information.
Supporting compliance requirements
With increasing regulations on data protection (like GDPR and HIPAA), businesses need to ensure they’re handling data securely. VPN tunneling is essential for meeting compliance requirements. It helps encrypt sensitive information, ensuring your company stays on the right side of the law.
Enhancing network flexibility
Whether you’re managing a global team or connecting multiple office locations, VPN tunneling offers network flexibility. It allows businesses to securely connect remote offices or workers, providing the kind of scalability that’s essential for modern business growth. Additionally, it enables remote workers to safely access sensitive information that is protected behind a firewall, ensuring secure and seamless access to critical business resources.
Key features to look for in VPN tunneling solutions
When looking for the right VPN tunneling solution, it’s important to find one that ticks all the boxes for your business needs.
Here’s what you should be looking for:
- Advanced encryption: Look for a solution that uses the latest cryptographic encryption methods to ensure your data is protected with the most powerful security measures available.
- No-Log policy: Your data should stay private, and that means the VPN provider shouldn’t store any logs of your online activities.
- Speed and performance: A slow VPN defeats the purpose. Ensure your solution delivers fast and stable connections.
- Cross-platform support: Whether your team uses Windows, Mac, or mobile devices, the VPN should be compatible across all platforms.
- Split tunneling: As discussed, this allows you to control traffic that can be routed through the tunnel.
How VPN tunneling benefits specific industries

Healthcare
Healthcare organizations deal with sensitive patient data that are protected by law. VPN tunneling helps hospitals, clinics, and remote healthcare workers access systems securely, ensuring compliance with regulations like HIPAA and protecting patient confidentiality.
Finance
For financial institutions, security is non-negotiable. VPN tunneling enables banks and investment firms to safeguard their transactions, protect client data, and ensure secure access to sensitive financial systems.
E-Commerce
E-commerce businesses handle vast amounts of customer data and transactions. VPN tunneling ensures that customer payments, personal details, and order information are securely transmitted, preventing fraud and ensuring trust.
IT Services
IT service providers often manage multiple client networks and need to ensure secure access for their teams. VPN tunneling secures internal systems and provides a safe way for IT teams to troubleshoot and manage client networks remotely.
What are the advantages of a VPN tunnel?
A VPN tunnel offers several key advantages by creating a secure, encrypted connection between your device and the internet:
- Enhanced security: Encrypts your data, protecting it from hackers and unauthorized access, especially on public Wi-Fi networks.
- Privacy protection: Masks your IP address, making it difficult for ISPs, advertisers, and websites to track your online activities.
- Secure remote access: Allows safe connection to company networks and resources with remote access VPN while working remotely.
- Bypass bandwidth throttling: Prevents ISPs from slowing down your connection based on your online activities.
- Access restricted content: Enables access to geo-restricted or censored websites and services.
By routing your internet traffic by tunneling in VPN, you ensure a higher level of enterprise security and privacy in your online activities.
UEM and VPN tunneling: A perfect pair
Unified Endpoint Management (UEM) and VPN tunneling are a match made in endpoint security heaven.
UEM and endpoint security solutions work hand in hand to provide businesses with robust protection across devices and networks. A UEM solution like Scalefusion ensures that devices accessing your network are managed, compliant, and secured against potential vulnerabilities. On the other hand, endpoint security solutions like Veltar complement this by adding powerful safeguards, such as VPN tunneling, to encrypt data and protect communication channels from cyber threats.
By combining UEM for device control and endpoint security for network and data protection, businesses achieve an all-encompassing defense system. This synergy ensures that every device and the data it transmits are protected, regardless of location or user.
Secure your business with Veltar
When it comes to endpoint security, Veltar takes protection to the next level. Designed to safeguard your business from threats, Veltar combines powerful features like VPN tunneling, web content filtering, application control, and I/O device access control to create an impenetrable defense for your endpoints.
With VPN tunneling, Veltar ensures that sensitive data transmitted across networks is encrypted and shielded from unauthorized access. Whether your team is working remotely or handling confidential information, Veltar provides a secure communication channel you can rely on.
Don’t leave your business vulnerable. Protect your endpoints, secure your data, and stay compliant with Veltar. Learn more about Veltar and start your journey to improved endpoint security today.
FAQs
1. What are the different types of VPN tunnels and what they do?
The different types of VPN tunnels include site-to-site, remote access, cloud VPN, SSL, and double VPNs. A VPN tunnel establishes a secure, encrypted connection between your device and a VPN server, safeguarding your data from hackers, ISPs, and other third parties. This ensures your online activities remain private and protected, especially on public Wi-Fi networks.
2. What is a tunnel in a VPN?
In VPN terminology, a “tunnel” refers to the encrypted pathway through which your data travels between your device and the VPN server. This tunnel encapsulates your data, making it unreadable to unauthorized entities.
3. How is tunneling accomplished in a VPN?
Tunneling in VPN is achieved by encapsulating your data packets within another set of packets using VPN protocols like OpenVPN, L2TP/IPsec, or WireGuard. This process encrypts the original data, ensuring secure transmission over the internet.
4. What is the difference between a VPN and a VPN tunnel?
A VPN (Virtual Private Network) is a service that provides secure internet connections by encrypting your data and masking your IP address. A VPN tunnel is the specific encrypted connection established between your device and the VPN server within the VPN service.
5. Is VPN split tunneling good or bad?
VPN split tunneling can be both good and bad depending on use. It improves speed and access to local resources, but it can expose your device to security risks since not all traffic goes through the secure VPN tunnel. For sensitive environments, full tunneling is usually safer.