Virtual Cloud Network: How Does It Work and What Does It Offer?

December 20, 2022

You may have heard of a new type of network that’s been touted as the future of the internet. The virtual cloud network (VCN) works privately anywhere on the internet, eliminating the constraints of on-premises networks. In fact, operating a VCN is like having both your own network for cloud computing and on-premises computing.

The VCN gives you freedom as well as control. You can use your own private and public IP addresses, modify routing tables and subnets, and employ sophisticated firewalls. The technology combines security and speed to handle modern demands.

Approyo is the leading full SAP service provider. Thanks to their expertise in cloud solutions, they can assist you with virtual cloud networks as well as public and private cloud deployments.


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What is a Virtual Cloud Network (VCN)?

A virtual cloud network is a method of connecting IT resources that extend throughout the internet rather than only in a limited area. You essentially have a private network that encompasses hardware and software—anywhere!

Virtualization means the network is no longer defined by a physical space, such as a data center. Thus, VCNs are virtual in the sense that they use software instead of hardware to delineate the network. This allows the network to spread across the cloud, yet you retain control over resources within the network.

A virtual cloud network requires far less tangible equipment than a conventional one because network-related activities are handled via software. For your organization’s users, it’s as if they’re on the network—regardless of whether they connect from work, home, or anywhere else. Should you want to keep specific resources apart, you can also use multiple separate VCNs. For example, creating different networks for different departments.

The types of resources you’ll find on a virtual cloud network include servers and virtual machines (VMs). The virtual network functions much like a conventional network, except that it’s in the cloud. This makes it far faster and easier to add capacity: you simply provision new resources.

How Does a Virtual Cloud Network Work?

A virtual cloud network comprises a mix of the public cloud and the private cloud. While a public cloud normally rents out the provider’s hardware and services to many clients, a private cloud serves a single organization. The VCN works by using public cloud resources but blocking off a subnet for each client’s exclusive use.

As an example, suppose that a large public cloud provider offers customers a virtual cloud network service. Although the service runs over the provider’s public cloud infrastructure, the company separates an IP subnet for each customer. Therefore, a rented subnet appears as your own private cloud.

Instead of wiring together a traditional network, a VCN uses software to achieve connectivity. The software does the equivalent of routers and switches, creating a digital network that runs on top of the physical network.

With a virtual cloud network, you can connect laptops and desktops—as well as internet of things (IoT) devices—from any location. Another advantage is being able to connect an entire physical network that you already run, such as the network in your offices, to the VCN. It’s like having a private office network with a global reach.

The Benefits of a Virtual Cloud Network


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A virtual cloud network offers numerous benefits, ranging from performance to cost. Generally, VCNs are known to provide superior connectivity compared with traditional networks. You can drastically decrease the amount of cabling and hardware you manage while also extending your network’s scope.

In addition, virtual cloud networks are simpler to manage. This is because you’re able to control all your physical networks, no matter how remote, from a single location. For instance, you could automatically update devices on some or all parts of your network—as well as test the security of any hardware and software—from a central office.

The lower costs of a virtual cloud network stem in part from its centralized network management. Instead of having to send people to fix problems in different places, you can solve everything from a single place.

Because you can easily reconfigure and reroute your network, it becomes more flexible. The software gives you complete control. That’s a huge advantage over physical networks, which are costly to restructure, even when it’s feasible. Moreover, it’s much faster and less expensive to expand a VCN because it’s done via the software.

VCN and Cloud Transformation: Why It Matters

conWith an ever-increasing number of companies moving their IT resources to the cloud, virtual cloud networks have a lot to contribute. Using your own high-speed, low-cost VCN improves agility. Your applications will run better, thus supporting your organization’s overall performance.

Virtual cloud networks encourage organizations to innovate and out-compete. Customers nowadays expect quicker and better services, as well as additional security, and the pressure is on to move to the cloud. VCNs are an integral part of this transition.

Virtual cloud networks offer a solid base by making the cloud a “home” for your organization. They provide widespread access to computing resources with the necessary speed and security. Defining networks in software offers precisely the flexibility that cloud transformation demands.

Upgrade Your Cloud Network with Approyo

A virtual cloud network, or VCN, is a new type of network that’s quickly gaining prominence. It uses public cloud resources to deliver the functionality of your own private network. By utilizing the breadth of the internet rather than just your local facilities, you’ll enjoy the performance and cost benefits of scale.

The use of virtual cloud networks is expanding, as more organizations choose the twin advantages of control and adaptability. Indeed, VCN technology is becoming an integral part of the cloud transformation process for many companies.

When you’re making the move to a virtual cloud network, it helps to work with an experienced IT service provider. Approyo has decades of experience supporting companies with their IT needs—including more than 1,000 SAP environments under management. Tell Approyo about your requirements and they’ll work to deliver a top-notch solution!

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