A closed network, also called a private network, is one in which connectivity is only allowed to authorized users. Generally, a closed network uses firewall routers to restrict its use to a limited number of individuals.
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Why have a closed network?
Unlike an open network, which is characterized by its decentralized nature, a closed network is more secure because it minimizes exposure to external threats and other security vulnerabilities. A closed network typically has three properties to make it as such:
- Strict access controls: Only verified network users can connect, typically through strict authentication protocols and user permissions.
- Higher level of data privacy: Closed networks offer a higher level of data privacy because of their restrictive nature.
- Network isolation: A closed network is isolated from public networks. Depending on how the network is designed, this isolation can be physical or logical.
Why have a closed network?
The main reason why an organization may want to use a closed network is enhanced security. With fewer entry points, a company significantly reduces its risk of cyberattacks and improves its overall cybersecurity posture.
A closed network may also be significant in your data governance and compliance strategies, especially regarding meeting and maintaining various data privacy regulations, such as the GDPR or HIPAA. Depending on what service or product you offer and the level of privacy you market to your customers, a closed network may be a good option to comply with these regulations strictly.
In addition, a closed network allows for more control, which may contribute to better resource and data management.
Disadvantages of a closed network
Closed networks may become challenging to maintain if your organization scales in the future and you need to add more users. Adding new users or resources to a closed network requires significant adjustments to the network infrastructure itself—which may lead to downtime or, worse, a damaged or compromised network.
This naturally brings to mind the cost of maintaining a closed network. Implementing one can be more expensive and less cost-efficient for smaller organizations. They would need specialized hardware and software to meet the demands of a closed network, which can strain their IT budgets.
Closed networks vs open networks
In an open network, all users can access data within the infrastructure regardless of location or role. Here, participants can freely join and leave a network, allowing for more team collaboration. We’ve created a simple comparison table to highlight the main differences.
| Feature | Closed network | Open Network |
| Definition | Restricted network | Publically accessible network |
| Access control | Requires permissions, passwords, and user authentication | Minimal to no restrictions |
| Security | High security | Potentially less secure |
| Examples | Private corporate intranets, military networks, secure Wi-Fi | Public Wi-Fi |
| Use cases | Suitable for sensitive data and secure communications | Ideal for sharing public information and open collaboration |
| Ownership | Internal stakeholders | Freely accessible |
| Performance | Consistent and predictable due to limited users | May vary depending on traffic and usage |
Which one is better: Closed network or open network?
Choosing between a closed network and an open one depends on your specific business needs. Closed networks are ideal for environments where security, privacy, and controlled access are critical. They offer a secure environment for sensitive data, such as personally identifiable information (PII), but they can be less flexible and difficult to scale.
Open networks, on the other hand, are better suited for fostering collaboration and innovation. While they provide greater flexibility and scalability, they also carry higher cybersecurity risks.
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