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From a laymans point of view, intranet can be explained as a private version of the internet that is applicable to that particular organization only.

Technically, it can be defined as a private network of computers, which uses network connectivity, internet protocols and other systems to transfer the data of an organization within itself. It is one of the most secured way in which data transaction inside an organization can take place. Like internet, all commonly used protocols can be used like FTP and e-mails.

An intranet comprises of internet protocols and TCP/IP, HTTP which help in creation of a privatized net. For the security purpose of the sensitive information, there are security checks like encryption and decryption of the data.

The major application of intranets is in delivering tools and applications and majority for internal communication among working groups for efficient project management and for increasing the productivity. Online forums can be created for discussion of key issues among the employees. Intranets are generally handled, in large organizations, by the HR or communication departments.

An intranet website appears and performs just like any other website except that it has firewall surrounding to distinguish the authorized users from the unauthorized one. These days intranets are the fastest growing part of internet as they are comparatively less expensive to construct and run as compared to proprietary protocols based private networks. Also with the usage of intranets, the information flow increases and this further helps in healthy growth of the company.

Advantages of using Intranet

Increase in Productivity

The data transactions can be done much faster and this results in increased productivity of the employees. The employees can access data from the database at any time and any where and this increases the accuracy as well as speed which in turn has a positive effect on their productivity.


The speed increases with the usage of intranet as the communication time is cut down and the information and documents are easily accessible with no human interface and other such similar delays.


Intranets can prove to be an important means of communication within the boundary of the organization. It is an excellent tool to communicate both horizontally and vertically within a company.

Database management

It serves as a good technique of maintaining the database and updating it at regular intervals. The benefit here lies in the updation process also. Because of regular revisions, all the employees can avail the revised versions of the documents through the intranet and do not waste their time and energy in searching for the new documents.

Disadvantages of Intranet

The security concerns can be a major issue in case of intranets. It is important that the data is only accessible to the authorized users and the employees of the company.

It is also very important that the information is updated at regular intervals. Publication of information must be controlled to ensure that only correct and appropriate information is provided in the intranet.


An extranet is a personalised internet on the inernet.

It is unlike intranet because in intranet, details are shared only amongst the company, while with extranet, details are accessible to customers, partners, suppliers, or others outside the company or other parties involved or dealing with company.

It can be defined as a private network using Internet protocols and network connectivity to share the details or information with suppliers, vendors, partners, customers or other businesses. It is an intranet that is also used by people outside the organization.

Such a system is provided through a gateway with a firewall, user authentication, encryption of data, and also with virtual private networks. Such a medium can establish an easy can access to information for off-site employees also.

Secured extranets are used to create virtual data room services for organizations in various fields, for file or data management, project management or for project collaboration.

An extranet requires security and privacy and for that it important to have firewall server management, certificates, secured authentication, encryption of data, and the use of virtual private.

Advantages of using Extranet


Extranets can improve organization productivity by automating processes that were previously done manually.Automation can also reduce the margin of error of these processes.

Time saving

Since extranet connects people from all sectors and contributing to one business, it saves a lot of time in communication. The project information can be seen by all business partners, customers, employees, suppliers and other stake-holders. So time in organizing and attending meeting is saved specially when the trade is an international one.

Information updating

All the parties involved can update their own information and thus editing and changing is easier and instantaneous. So all users involved have an access to the most recent and updated information.

Disadvantages of Extranet

It is comparatively more expensive.

The security can be a major issue in case of extranets as well. It is important that the data is properly secured and should not be accessed by unwanted entities.

As the human interface reduces there is a lack of bonding between the parties and this might affect the loyalty of the parties involved in the business.

Use of Extranet

For Electronic Data Interchange in case of large exchange of data
For project collaboration or developing joint ventures
For applications like online banking, management or in case of affiliations, etc
Share and approve data with partner companies, parent companies, etc