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Extranets are private networks that use internet technology to share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses. Unlike an intranet, which is for internal use only, an extranet is accessible to authorized external users. This controlled access allows organizations to collaborate and share data securely with external parties.

Extranets can be used for a variety of purposes, such as business-to-business (B2B) e-commerce, supply chain management, customer support portals, and collaborative project management. They provide a secure platform for sharing documents, databases, and applications, facilitating smoother communication and operations between different entities.

The technology behind an extranet is similar to that of the internet, often employing secure connections like virtual private networks (VPNs) to protect sensitive information. Access is typically granted through user authentication, ensuring only authorized individuals can view or interact with the shared resources.

By extending an intranet's capabilities to external partners, extranets help improve efficiency, reduce costs, and foster stronger relationships within a business ecosystem. They are a valuable tool for modern businesses looking to enhance collaboration and streamline inter-organizational processes in a secure and controlled manner.