Definition

value-added network (VAN)

VAN is also an acronym for virtual area network.

A value-added network (VAN) is a private network provider (sometimes called a turnkey communications line) that is hired by a company to facilitate electronic data interchange (EDI) or provide other network services. Before the arrival of the World Wide Web, some companies hired value-added networks to move data from their company to other companies. With the arrival of the World Wide Web, many companies found it more cost-efficient to move their data over the Internet instead of paying the minimum monthly fees and per-character charges found in typical VAN contracts. In response, contemporary value-added network providers now focus on offering EDI translation, encryption, secure e-mail, management reporting, and other extra services for their customers.

This was last updated in September 2005

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