Disadvantages of Extranet

1. Extranets can be expensive to implement and maintain within an organization (e.g.: hardware, software, employee training costs) — if hosted internally instead of via an ASP.
2. Security of extranets can be a big concern when dealing with valuable information. System access needs to be carefully controlled to avoid sensitive information falling into the wrong hands.
3. Extranets can reduce personal contact (face-to-face meetings) with customers and business partners. This could cause a lack of connections made between people and a company, which hurts the business when it comes to loyalty of its business partners and customers.