Understanding Private Network & Why It Matters For Business

A private network is a restricted network with access given to a closed group of people or within an organisation and the network is connected to known nodes. In a private network, the IP addresses allocated are private and not known or exposed to external parties. This is the opposite of a public network, which is open for connection with anyone and can connect to any nodes available such as the Internet.

Organisations need private networks to secure data transmissions of sensitive information between nodes that are geographically spread out. For example, between offices, branches and outlets that are in different parts of the country or different parts of the world that is impossible to connect with direct cabling or LAN infrastructure. 

A private network typically uses dedicated lines for each organisation, thus bandwidth and throughput are guaranteed, with better connectivity. 

Typically, an organisation would subscribe to a local or international telecommunications service provider to build such a network, by using their infrastructure to connect the nodes privately through many types of technologies, such as dedicated fixed-lines with private IP addresses. 

Security and throughput are just one of the many advantages that a private network can bring to your business, which is why organisations should consider a private network as opposed to using a public network, as the latter is shared, and delivery of service level is on a best-effort basis. 

Other advantages of private networks are:


Reliability is created by having a dedicated network that is not shared with others so your bandwidth and latency will not be impacted by sudden surges of usage from unknown users. If your business requires reliable and consistent data transfers, such as video streams, robotics, drones and automated machine control, private networks are necessary to ensure high-level and predictable performances.

Better Network Coverage & Capacity

By owning your own private network, your business can enjoy guaranteed coverage and dedicated capacity. Although Malaysia is currently rolling out 5G networks, it is still not widespread enough to provide the required coverage and capacity for supporting vertical industry use cases.

Increased Security & Data Privacy

A private network, by definition, is fully separated from wider public networks. With a private network, you can ensure that your business data stays within your premises as only authorised devices and users can connect to your private network. 


Sometimes public networks are not available in certain areas, such as remote plantations, ports, and mines. Therefore, it becomes necessary to create your own private and dedicated network for your remote worksites. 

Full Control

A private network ensures that you have complete ownership and full control over your network, so you can configure settings, control usage and to quickly and efficiently respond to any changes required for your business needs.

To conclude, if your business is looking for higher performance, security, and flexibility in a network, a private network is a better option as it offers all the benefits mentioned above, as well as gives your business greater opportunities to grow and deliver better services to your customers. However, simply adding a new private connectivity will not allow you to reap its full benefits. You will need an experienced telecommunications system integrator to assist you in designing and implementing a private network. As an independent managed service provider with over 20 years of experience, we at EKTECH are best equipped to assist you.  Contact us today to get started!