VPN stands for Virtual Private Network. It is a virtual tunnel between two locations connecting a computer to a remote network. A VPN often makes use of the internet through a tunnelling protocol combined with security features. A possible use of a VPN is to allow employees to log on to a company network from their homes using their existing internet connection and a VPN tunnel. The information sent through the VPN is encrypted.
A point to point or private line is (opposed to VPN) a physical line between to locations which is totally transparent, so with a point to point line a remote location is physically connected to the network on the other side, as if being there.
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