What is Value Added Network?

Value added network (VAN) or Virtual Area Network (or sometimes referred to as turnkey communication line) is a private network that is set up between two businesses to facilitate an EDI solution or provide some other online business service such as corporate workgroups, focus groups, legal and medical consultation, etc. Typically businesses would hire the private communication line from a service provider. These communication lines are of high bandwidth (typically a number of Mega bits per second) and implemented using ADSL (Asymmetric Digital Subscriber Line) or cable modem.

VANs can essentially be described as the services that support messaging for EDI. These are systems that store business messages for the sender and forward the messages to the receiver when it is convenient for the receiver. Each of the business parties have a mailbox of their own where their messages are accumulated for their collection at the time of their convenience. This is in contrast with direct communication line where both the business partners need to be live simultaneously for data communication. Effectively sender sends the transaction to VAN, where it gets processed and held possibly with a number of other transactions before being forwarded to the receiver. This is not real-time communication and all take place in a secure environment through the use of encryption. In terms of EDI related value added services, VANs typically also handle business protocol conversion, implementation assistance and business auditing assistance.