Wikipedia says 'A virtual private network (VPN) is a computer network in which some of the links between nodes are carried by open connections or virtual circuits in some larger networks (such as the Internet), as opposed to running across a single private network.' The full details can be found here.
There are various ways that a VPN can be set up.
A simple client to site VPN can be created between a remote worker's laptop and their office by using a firewall at the office and providing either a VPN client installed on the user's laptop or using SSL through a web browser. Either basically perform the same function in creating a 'tunnel' between the two devices and encrypting the data moving between them, keeping the information private.
A site to site VPN can be created between two firewalls. This enables the two networks at either site to 'see' the other and behave as it they were both at the same location. This is useful in a branch to head office style environment where central information or resources can be shared. This style of VPN works very well in a 'hub and spoke' design but can become more cumbersome when all the remote branches need to see each other as each branch needs to have a VPN tunnel established to every other location.
Multi site to multi site VPNs are often best created using MPLS VPNs. MPLS or Multi Protocol Label Switching (See Wikipedia for more details) allows the creation of your own network within the Internet. No firewalls are necessary as each office has it's own private, unroutable IP address. The Wide Area Network (WAN) connection is provided through a specially configured router which encapsulates each data packet with a private label. These labels are read by our core network switches which then understand how to pass this data to it's intended recipient. Internet access is provided 'In the Cloud' (i.e. from our core switches) where your firewall will sit managing the Internet access for all your branches. This means you effectively have a private network with a single entry and exit route all based on our network.
MPLS VPNs are created on top of our managed leased line or broadband products and we would be delighted to discuss the options available to you. How to do this can be found here.