What Is a Value-Added Network (VAN)? 2025 Guide for Australian Businesses

Value-Added Networks (VANs) were once the lifeblood of secure electronic data interchange (EDI) for businesses across Australia. In 2025, as digital transformation surges and government policy shifts toward open data, many are asking: does the VAN still matter? Or has it been eclipsed by modern, cloud-native B2B solutions? Here’s what every Australian business needs to know about VANs in today’s rapidly changing digital landscape.

The Basics: What Is a Value-Added Network (VAN)?

A Value-Added Network is a private, third-party network that facilitates secure, reliable electronic data exchange between businesses. Historically, VANs offered:

• Data security and encryption for sensitive transactions
• Message routing and protocol translation between disparate systems
• Audit trails and compliance features
• Mailbox services for storing and forwarding EDI documents

VANs became essential for industries like retail, logistics, and manufacturing, which depended on Electronic Data Interchange (EDI) for ordering, invoicing, and supply chain management. In Australia, VANs supported the transition from paper to digital records—especially for large-scale trading partners and government e-procurement.

2025 Update: How VANs Fit in a Cloud-First, API-Driven World

The Australian digital economy is evolving at breakneck speed. The 2025 landscape is shaped by:

• Government initiatives like the Consumer Data Right (CDR) and the Digital ID Framework, which encourage open standards and interoperability
• Cloud adoption among enterprises, pushing many legacy systems (including VANs) to modernise or risk obsolescence
• API-based B2B integration and real-time data exchange, reducing reliance on traditional file-based EDI

Yet, VANs haven’t disappeared. Here’s why:

• Legacy system compatibility: Many supply chains and government agencies still require EDI via VANs for compliance or integration with older platforms.
• Security and compliance: VANs continue to offer robust encryption, data retention, and audit capabilities that meet regulatory requirements—especially in highly regulated sectors like healthcare and finance.
• Hybrid solutions: Modern VAN providers are evolving, offering cloud gateways, API bridges, and flexible integration with SaaS platforms.

Example: In 2025, a major Australian supermarket chain still mandates EDI purchase orders via a VAN for hundreds of suppliers, but now supports an API-based interface for tech-savvy partners. This hybrid approach ensures backward compatibility while enabling innovation.

Costs, Risks, and Choosing a VAN in 2025

VANs operate on a fee-for-service model—typically charging per transaction, mailbox, or data volume. With increased competition from cloud-based B2B integration platforms, VAN providers have sharpened their offerings:

• Flexible pricing for seasonal or variable transaction volumes
• Real-time analytics and dashboards for better operational oversight
• Direct integration with ERP, accounting, and supply chain platforms (e.g., SAP, Oracle, MYOB)

However, businesses need to weigh:

• Vendor lock-in: Proprietary VAN protocols can make switching providers difficult.
• Integration complexity: Some VANs lag in supporting modern APIs and cloud-native workflows.
• Cost-effectiveness: For small businesses or those with limited EDI needs, direct API or secure email solutions may be more economical.

According to Australian Bureau of Statistics data, EDI usage remains high among large enterprises in 2025, but mid-market firms are rapidly adopting direct, API-based integration—often bypassing traditional VANs altogether.

The Future of VANs: Adapt or Fade Away?

So, are VANs still relevant in 2025? For some industries—especially those with entrenched EDI standards and strict compliance needs—the answer is yes. But the trend is clear: VANs must continue to evolve, embracing cloud, APIs, and flexible integration. Forward-thinking providers are repositioning as B2B integration hubs, enabling seamless connectivity between legacy EDI, cloud platforms, and next-gen data services.

For Australian businesses, the key is to audit your supply chain and data exchange needs. If you’re deeply embedded in legacy EDI, a modern VAN with cloud and API support may be the safest path. But if you’re starting fresh, consider whether direct integration or open data platforms could offer a more agile, cost-effective solution for your digital business in 2025.