An extranet is a private network that uses Internet protocols, network connectivity, and possibly the public telecommunication system to securely share part of an organization's information or operations with suppliers, vendors, partners, customers or other businesses. An extranet can be viewed as part of a company's intranet that is extended to users outside the company (e.g.: normally over the Internet). It has also been described as a "state of mind" in which the Internet is perceived as a way to do business with a preapproved set of other companies business-to-business (B2B), in isolation from all other Internet users. In contrast, business-to-consumer (B2C) involves known server(s) of one or more companies, communicating with previously unknown consumer users.
Briefly, an extranet can be understood as an intranet mapped onto the public Internet or some other transmission system not accessible to the general public, but managed by more than one company's administrator(s). For example, military networks of different security levels may map onto a common military radio transmission system that never connects to the Internet. Any private network mapped onto a public one is a virtual private network (VPN). In contrast, an intranet is a VPN under the control of a single company's administrator(s).
An argument has been made[citation needed] that "extranet" is just a buzzword for describing what institutions have been doing for decades, that is, interconnecting to each other to create private networks for sharing information. One of the differences that characterizes an extranet, however, is that its interconnections are over a shared network rather than through dedicated physical lines. With respect to Internet Protocol networks, RFC 4364 states "If all the sites in a VPN are owned by the same enterprise, the VPN is a corporate intranet. If the various sites in a VPN are owned by different enterprises, the VPN is an extranet. A site can be in more than one...