6 Advantages and Disadvantages of Extranet | Drawbacks & Benefits of Extranet

 

Extranet: What is it ?

An extranet is a type of virtual private network used to manage vendor, partner, and supplier access. It also comes with internet connectivity, which is particularly helpful for distant business associates who wish to use computers or other devices to interact while they are in different places.


What is the purpose of the Extranet ?

An extranet is only a network that connects two intranets. Those that utilize extranets to access the internet for daily tasks can gain from it. However, only authorized users have access to the materials; the general public is not able to use them.


Where does one use the Extranet?

Extranet usage is currently prevalent in numerous industries, including academic institutions and medical faculties. Without a doubt, an extranet may improve your company's worth by facilitating efficient communication between clients, consumers, and partners. 

 

However, there are some unavoidable drawbacks to the extranet as well. Before establishing them, businesses must weigh these distinct benefits and drawbacks.


I'll be outlining 6 Advantages and Disadvantages of Extranet | Drawbacks & Benefits of Extranet in this post, along with their advantages and disadvantages. You will learn about the pros and cons of using the extranet from this page.

Now let's get started,

   

Advantages of Extranet

1. Communication

 

Business organizations can transact in a more controlled and secure environment thanks to the extranet. Additionally, wherever you are in the world, cooperation with stakeholders and clients is important. The extranet makes sure that no data is lost.


2. Flexibility

Extranet gives users the ability to access corporate information around-the-clock, regardless of their location or schedule. For remote and mobile workers who wish to cut costs, this is extremely helpful.


3. Efficiency

Extranet can be used to increase overall corporate efficiency because it provides immediate access to information on the network. There is no longer a waiting period for responses for the clients or associates. 

 

Customers are also forced to update their information when they have direct access to it, which can help to reduce the possibility of inaccuracies.


4. Security 

Controlling who has access to your data also helps to provide an additional layer of protection. 

 

Firewalls and proxies typically block this form of unwanted access, even if illegal entry into your system might result in numerous security breaches. Moreover, authentication has been employed as a security mechanism for services like emails.


5. Productivity

Your business will be more productive as long as there is more automation. An extranet prevents bottlenecks and maintains vital information, guaranteeing that production never declines. No information is overlooked or lost in an e-mail.


6. Less Errors

Customers can access their order history over the extranet, allowing them to confirm payments and balances. 

 

Orders from distributors and suppliers can also be processed by it. As a result, there is a smaller chance of expensive errors. 

Disadvantages of Extranet

1. Cost

Without a doubt, extranet costs include direct costs like software, hardware, and staff training. Furthermore, repairs must be made separately from other expenses. 

 

On the other hand, some areas of expenses can be eliminated or drastically lowered once extranet is implemented.


2. Maintenance

Within an enterprise, maintaining and implementing an extranet is costly. particularly if it is hosted in-house. 

 

In order to effectively reap the benefits of extranet, it must be managed by staff with experience. Furthermore, it requires the purchase of both software and hardware.


3. Dependency

The performance of an organization may suffer if its personnel never leave the network and don't take their jobs seriously. It is easy to distinguish between the performances before and after the extranet was used.


4. System Protection

Even with all of the security precautions in place, if used carelessly, an extranet can still fall into the wrong hands. Both external and internal sources may be the cause of this. 

 

Particularly private information, like the ID and password, may be unlawfully used.


5. Communication Delay

Extranet use is typically not recommended for real-time communications like phone calls and video conferences. 

 

There is a communication lag. Since it's difficult for clients and business partners to meet in person, this could be a big downfall for the companies.


6. User-Friendliness

There are capabilities, connectors, and customizations on the extranet that not everyone will find interesting. 

 

If there are too many of them, other issues may arise. As a result, many users would rather not use extranets without adequate training.