VPN Hardware vs. VPN Software: Which Do You Need?

If your business needs a VPN, you might be thinking about investing in VPN hardware, a popular choice for companies and organizations that want secure, reliable internal connections.

But can you get away with a software VPN instead?

In this article, we’ll break down the software VPN vs. hardware VPN differences and help you decide which one makes the most sense for your needs. 

VPN Hardware vs. VPN Software: A Quick Comparison

The table below compares the key differences between a hardware and software VPN so you can decide based on performance, management, cost, portability, and setup requirements.

Feature	Hardware VPN	Software VPN
Performance	Usually faster because a dedicated device handles the VPN work	Speed depends on your device’s power
Management	One setup covers all devices	Each device requires a separate installation
Device Coverage	Protects the whole network	Protects only the device it’s installed on
Cost	Higher upfront cost for the device.	Often subscription based
Portability	Stays in one location (unless you buy a special travel model)	Works anywhere you can install the app
Setup Complexity	More technical	Easier for beginners

VPN Hardware: What Is It?

A hardware VPN is a dedicated physical VPN device that’s designed to handle VPN connections. It has its own processors that handle the VPN encryption and decryption and route traffic to the right places.

Pros	Cons
✅ High performance ✅ Centralized management ✅ Compatible with any device that can connect to a network ✅ Can handle many simultaneous connections	❌ More expensive than software VPNs ❌ Complex setup ❌ Limited portability ❌ Requires maintenance

A hardware VPN consists of several parts that work together to create a reliable private network. While the exact setup depends on the vendor and model, most hardware VPNs include the following elements:

• VPN router or gateway: The main device that runs the VPN. It’s where the VPN encrypts data leaving the network, decrypts data coming in, verifies user identities, and sends traffic to the right destination inside or outside the network.
• Network interfaces: The physical ports on the VPN gateway that allow your VPN hardware to connect to other networks. WAN ports connect to the internet, while LAN connect to local devices, like servers and printers.
• Dedicated encryption processor: A special chip that handles encryption so your device’s CPU doesn’t slow down when securing data.
• Switching equipment: Network switches that connect your VPN hardware to other devices (routers, firewalls, VPN concentrators) and direct data to the right place within your network.
• Redundancy & high availability: Built-in backup systems, like failover hardware, spare components, and dual power supplies, that keep the VPN running even if part of the hardware fails.
• Management console: A web-based or dedicated control panel where admins can change VPN settings, set access rules, monitor traffic, and fix problems in real time.
• Authentication systems: Tools that verify a user’s identity, like passwords, digital certificates, multi-factor authentication, ensuring only approved people can connect to the private network.
• Built-in security layers: Extra protections like firewalls, intrusion prevention systems (IPS), content filtering, and antivirus software that block malicious activity before it reaches your network.
• Traffic distribution tools: Load balancers that spread VPN connections across multiple gateways to boost speed and reduce the risk of outages.

How Does VPN Hardware Work?

A hardware VPN acts like a middleman between your network and the outside world. It checks who’s allowed in, scrambles your data so outsiders can’t read it, and sends it safely to its destination and back again.

Here’s what happens step by step:

1. Connection attempt: When you open an application or try to reach a server, your device sends the request toward the VPN gateway (instead of going directly to the internet).
2. VPN hardware check: The gateway receives the request and checks its rules and session state to decide whether the traffic should go through the secure VPN tunnel or follow a normal route.
3. Authentication: If no VPN session is active, the hardware prompts for credentials such as a password, certificate, or multi-factor authentication during the handshake process.
4. Encryption: Once you’re verified, the VPN hardware encrypts the data using a secure protocol.
5. Secure tunneling: It then sends the encrypted data through a protected tunnel to the remote VPN endpoint, such as a company data center or cloud VPN service.
6. Decryption and forwarding: The remote endpoint decrypts the data and forwards it to its intended destination, whether that is an internal server or a public website.
7. Return path: The response is encrypted again, sent back through the tunnel, decrypted by the VPN hardware, and delivered to your device.

How to Choose a VPN Hardware Device

Choosing a VPN hardware device depends on your specific needs. Here’s what to consider:

1. Identify the Type of Hardware You Need

Before comparing specs, decide which form factor fits your environment:

• Dedicated VPN gateway: Designed specifically for VPN functionality, making it ideal for high-security environments.
• Integrated firewall/VPN device: Combines VPN capabilities with firewall and security tools in one unit.
• Router with VPN support: A general network router that also handles VPN connections. It’s mostly suitable for smaller offices. For example, you can get a FlashRouter with Private Internet Access (PIA VPN) pre-installed, so you can skip the (somewhat) complicated VPN router setup.
• Portable VPN router: Compact and lightweight VPN boxes that are great for remote workers or temporary setups.

2. Match Performance to Your User Load

The device you choose should be able to support the expected number of simultaneous VPN tunnels or client connections. If you plan to grow your business in the future, get a device that supports your future needs as well, since scaling can be even more expensive and require additional IT resources.

3. Ensure Strong Security and Protocol Support

Choose hardware compatible with widely used protocols like OpenVPN, IPSec/IKEv2, WireGuard, or SSL/TLS, and that supports strong encryption like AES-256 bit or ChaCha20. Advanced protections should include:

• Firewall with Stateful Packet Inspection (SPI)
• Intrusion Detection/Prevention (IDS/IPS)
• Content filtering, application control, and malware/antivirus scanning
  Optional Geo-IP filtering or VLAN-based traffic segmentation

4. Check for Built-in Redundancy

Look for failover features such as dual power supplies, multiple WAN interfaces, and backup components to maintain uptime in case of hardware failure.

5. Confirm Infrastructure Compatibility

Make sure the device integrates smoothly with your existing network components (think modems, routers, switches, or cloud infrastructure) and supports features like:

• VLAN tagging
• Bridge mode or VPN passthrough options
• VPN client/server roles (some devices only support one)

6. Evaluate Vendor Support

Select a vendor with timely firmware updates, strong technical support, and thorough documentation, along with good compatibility for third-party VPN services.

How to Set Up a Hardware VPN

Setting up a hardware VPN requires a little networking knowledge and is usually carried out by an IT professional. If some of the terms in this section sound a bit more technical, that’s why.

Depending on your use case, you have two options: 

1. Connecting two or more offices (site-to-site VPN): Good option if you need a permanent secure link between multiple offices.

2. Remote access (client-to-site VPN): Better option if you need employees to connect securely from home or while traveling.

Method 1: Site-to-Site VPN Setup

Before you start: For site-to-site VPN setup, you need to designate which location will be your main site and which will be the branch. You’ll also need two VPN-capable routers or firewalls, a public IP address or dynamic DNS on each site, and designated local network IP ranges for each site.

1. Prepare both routers: Log in to each router’s web interface from a computer on its LAN and make sure each has: 

• Up-to-date firmware
• A unique LAN subnet (e.g., main site 192.168.10.0/24, branch site 192.168.20.0/24)
• A static or public WAN IP (or DDNS if the ISP changes IPs)

In most cases, you can find this under Network > Interfaces > LAN in your router settings.

2. Configure an IPsec tunnel: Go to VPN > IPSec > Tunnels on the main site router and add Phase 1:

• Key Exchange Version: IKEv2
• Remote Gateway: Site B’s WAN IP or DDNS
• Authentication: Pre-Shared Key (or Cert)
• Phase 1 Proposal: AES-256, SHA256, DH Group 14

Then, add Phase 2:

• Local Subnet: e.g., 192.168.10.0/24
• Remote Subnet: e.g., 192.168.20.0/24
• Protocol: ESP
• Encryption: AES-256, SHA256

Repeat the same on Site B, reversing IPs and subnets: Its own LAN is Local, and the main site LAN is Remote.

3. Set firewall rules: Go to Firewall > Rules > IPsec. Here, allow traffic between LANs (e.g., allow any to any or restrict to certain ports/IPs). Do this on both routers.

4. Verify the tunnel is working: Go to Status > IPsec and click Connect. Then, test connectivity by pinging a device across the tunnel.

Method 2: Client-to-Site VPN Setup

For client-to-site VPN setup, you’ll need a hardware or VPS VPN server and VPN client software on remote worker devices. Here’s how to set all this up:

1. Get a VPN server: This can be a device in your office (like a VPN-compatible router or firewall) or a rented VPS in the cloud. It will be the gateway that remote workers connect to.

2. Turn on the VPN service: If you’re using OpenVPN, go to VPN > OpenVPN > Wizards in the server’s settings. 

You first need to create a certificate authority (CA) – a digital “signature” that proves you’re the real server. To do this, open your device’s certificate management tool or wizard and choose:

• Type: Create an internal certificate authority
• Name: Something like MyOffice-CA
• Key length: 2048 or 4096 bits (4096 = stronger)
• Digest Algorithm: SHA256
• Lifetime: e.g., 3650 days (10 years)
• Country/State/Org info: Fill in with your details

Once you’re done, click Save. Now you have a CA.

Next you need to create a Server Certificate (the server’s ID card, signed by your CA). In the wizard, select the following:

• Type: Create an internal certificate
• Name: Something like MyOffice-VPN-Server
• Certificate Authority: Choose the CA you just created
• Certificate Type: Server Certificate
• Key length: 2048 or 4096 bits
• Digest Algorithm: SHA256
• Lifetime: e.g., 3650 days

Then, click Save. Now your VPN server has an identity that matches your CA.

3. Set the VPN and LAN networks: In the VPN server settings, define the networks it should use. This tells the VPN which addresses belong to remote users and which belong to the office:

• Tunnel network: The IP range you’ll use for people connected over the VPN (e.g., 10.0.8.0/24)
• Local network: The office LAN’s IP range (e.g., 192.168.10.0/24)

4. Choose connection settings: In the VPN server settings, configure how clients will connect:

• Protocol: UDP (fastest for VPNs)
• Encryption: AES-256 with SHA256 authentication (strong security)
• Auth method: Either certificates only (TLS) or username/password

5. Create and send client configs: Use the VPN server’s export tool (e.g., the OpenVPN Export Package) to generate ready-to-use .ovpn configuration files. Share these files securely with your remote workers.

6. Install the client software: On each remote device, install the VPN client and load the configuration. For an OpenVPN configuration, install OpenVPN Connect, which is available for Windows, macOS, Android, and iOS. If you use a mini VPN router (like GL.iNet) you can upload the .ovpn file to it to get the whole network on the VPN.

7. Open the firewall port: Make sure your router/firewall allows traffic on UDP port 1194 (or the one you chose). Also, make a rule so that devices connected to the VPN can reach the office LAN.

VPN Software: What Is It?

A software VPN is an application you install on a computer, smartphone, or server that creates an encrypted connection over the internet. It runs on existing hardware, like your computer or phone, and uses system resources (CPU, memory) to handle encryption and traffic routing.

Pros	Cons
✅ Much cheaper than VPN hardware ✅ Easy setup ✅ Flexible use on the go ✅ Automatic updates ✅ Wide server access ✅ User-friendly	❌ Fewer customization options compared to hardware setups ❌ Slightly lower performance

How Does VPN Software Work?

VPN software is very similar to a hardware VPN, but without a dedicated physical gateway. Instead, it runs directly on your device, handling encryption, tunneling, and authentication in software rather than in a separate piece of hardware. Here’s what happens step by step:

1. Connection attempt: When you open an app or visit a website, the VPN software intercepts the request before it leaves your device.
2. Encryption: The VPN software encrypts your data using protocols like OpenVPN, IPSec, and WireGuard.
3. Secure tunneling: It sends the encrypted data through a secure tunnel to the chosen VPN server.
4. Decryption and forwarding: The VPN server decrypts the data and forwards it to its final destination (e.g., a website or cloud application).
5. Return path: Responses are encrypted again by the VPN server, travel back through the tunnel, and are decrypted by the software on your device before reaching your app or browser.

How to Choose VPN Software

Choosing VPN software depends mainly on your device type and usage needs. Consider these key factors:

1. Identify the Type of VPN Software You Need

Different software categories fit different users:

• Full-featured VPN apps: Dedicated apps for Windows, macOS, Linux, Android, and iOS are usually best for everyday use.
• Browser extensions: Lightweight, easier to use, but protect only browser traffic. Useful when you only want privacy for certain in-browser tasks or to avoid IPS throttling while streaming. Private Internet Access has Google Chrome and Firefox extensions.
• Manual configurations: VPN profiles set up through system settings (e.g., OpenVPN or WireGuard configs). Good if you need a VPN on unsupported devices.

2. Look for User-Friendly Apps for All Your Devices

Make sure the VPN has easy-to-use apps for all the OS you use, and check if it allows multiple simultaneous connections, so you can cover all of your devices. For example, PIA allows an unlimited number of connections under one subscription.

3. Prioritize Security & Privacy Features

Strong security should include:

• Support for modern protocols, like WireGuard, OpenVPN, IKEv2/IPSec
• Strong encryption (AES-256, ChaCha20)
• A kill switch to protect your data if the VPN unexpectedly disconnects
• DNS and IPv6 leak protection
• A verified no-logs policy

4. Evaluate Server Network Size & Locations

Choose a VPN with a wide network of servers across many locations to optimize speed and improve reliability. PIA has servers in 90+ countries, so you can always find a nearby location for optimal performance.

5. Consider Performance & Speed

If you stream, game, or use P2P file sharing networks, choose a VPN with a network of stable, high-speed servers. Some providers offer dedicated P2P- or streaming-optimized servers to enhance performance.

6. Review Customer Support

Get a VPN with 24/7 live support so you can get help whenever you need it. Make sure the VPN you choose has extensive support documentation on its website, so you can easily find answers to your questions.

7. Compare Pricing & Trial Options

Compare subscription plans, money-back guarantees, and free trial periods to ensure you get good value. PIA offers a 30-day money-back guarantee, so you can try the VPN risk-free.

How to Set Up VPN Software

Setting up a VPN app is easy on compatible devices. All you need to do is download the app and follow the installation prompts. Here’s how it’s done:

1. Choose the appropriate app for your device.



2. Sign in using your login credentials.



3. Select a server.



4. Click the power button to connect.



Software VPN vs. Hardware VPN: Which One Should You Choose?

The right choice depends on how you plan to use your VPN, how many people will connect, and what level of performance and control you need. 

Choose VPN hardware if you:

• Need to secure every device on a network without installing software individually
• Expect many simultaneous connections or heavy traffic loads
• Require high performance for VoIP, video conferencing, or large file transfers
• Want centralized management and monitoring from a single device
• Need enterprise-grade security features such as intrusion prevention, content filtering, or VLAN segmentation

Choose VPN software if you:

• Only need to protect a few devices
• Want a quick setup that doesn’t require specialized IT skills
• Need portability for travel or remote work
• Have a limited budget and want to avoid high upfront costs
• Can tolerate performance depending on individual device power

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