The extranet is a private network that uses the internet that allows people outside a business – partners, vendors or authorised customers – to access business information.
As the extranet is a private network, this ensures that the data is safer than if it was shared over a normal internet connection.
On top of internet technologies, the extranet also uses the public telecommunications system to share that information.
Essentially, an extranet is an extension of a business’s intranet.
Advantages of using an extranet include the ability to exchange large volumes of data using Electronic Data Interchange (EDI), sharing product catalogs exclusively with trade partners, and collaborate with other companies on joint development efforts.
In addition, the extranet allows businesses to jointly develop and use training programs with other companies, and provide or access services provided by one company to a group of other companies, such as an online banking application managed by one company on behalf of affiliated banks.
