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

What is Extranet ?

Extranet is a kind of Virtual Private Network that controls access of suppliers, partners and vendors. It includes internet access too and especially useful for the remote business associates who wants to communicate through computers or other devices while being in remote locations. 

What is the use of Extranet ?

 

Extranet is nothing more than a network that joins two intranets together. Using extranet users can be benefited from accessing the internet for accomplishing their daily tasks. But the resources cannot be accessed by the general public, it is available only to the authorized users. 

Where is Extranet used ?

 

Currently extranet has been used in many fields such as educational institutes and medical faculties. It is no doubt that extranet can add value to your business by making effective communication among partners, clients and customers. However extranet also faced by some disadvantages that cannot be ignored. These distinct advantages and disadvantages has to be considered by the organizations before establishing them.

 

In this article, I will be listing out 6 Advantages and Disadvantages of Extranet | Drawbacks & Benefits of Extranet. Through this post, you will know the pros and cons of using extranet.

 

Let's get started,

 

Advantages of Extranet

 

1. Communication 

 

Extranet allows business organizations to conduct their transactions in a more secure and controlled environment. And also collaboration with clients and stakeholders wherever you are in the world. Extranet ensures that no any information gets lost.

 

 

2. Flexibility

 

Irrespective of the location and time, extranet provides the opportunity for the users to access business informations 24 hours a day. This is especially useful for the remote and mobile staffs who wants to avoid unnecessary costs.

 

 

3. Efficiency

 

Since there is a direct access to the informations present on the network, overall the company efficiency can be improvised using extranet. The clients or the associates no longer has to wait for the responses. This kind of direct access also makes customers update their informations which can decrease the scope of errors.

 

 

4. Security

 

Another benefit of controlling access to your data is that it can ensure extra level of security. Although there can be many security breaches because of illegal entry to your system, firewalls and proxies most at times prevent these kinds of unauthorized access. And for services such as emails, authentications has been used as a security measure.

 

 

5. Productivity

 

As long as there are more automation, your company can enjoy more productivity as well. An extranet ensures that productivity never gets decreased by avoiding bottlenecks and preserving critical informations. Informations don't get lost in the email or stay unread.

 

 

6. Reduce Errors

 

Extranet provides a chance for the customers to access their order histories so that they can verify payment and balances. Even it can process orders from suppliers and distributors. Thus, the margin of costly errors is been reduced to a greater extent.

 

Disadvantages of Extranet

 

1. Cost

 

It is no doubt that extranet involves direct expenses such as hardwares, softwares and training of employees. Moreover repairing needs to be done at separate expense. However once you implement extranet other areas of expenses can be significantly reduced or even eliminated.

 

 

2. Maintenance

 

Both extranet implementation and maintenance is made expensive within an organization. Especially if it hosted internally. For fully acquiring the benefits of extranet, it needs to be maintained by experienced employees. In addition to that it involves purchasing of hardwares and softwares.

 

 

3. Dependency

 

If the employees of organizations always depend on network and fail to take work serious it can negatively impact the performance of the company. The performances can be clearly distinguished before and after the use of extranet.

 

 

4. System Protection

 

Al though extranet does contain many security measures, it can still go into the wrong hands if handled improperly. This can happen from both internal and outside of the organization. Especially sensitive informations such as the ID and password can be misused illegally.

 

 

5. Communication Delay

 

Extranet is not normally preferred in real time interactions such as video conference and telephony. There is a delay in communication. This can be a major downfall for the businesses since there is a problem making face-to-face meetings between customers and business partners.

 

 

6. User Friendliness

 

Extranet contains features, integrations and customizations that won't be appealing to many. Too many of them can lead to more complications. Hence, many users prefer not to use extranet without proper training.