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VPN is better. Frame Relay is aging technology. Since we are on the topic, MPLS is better than internet VPN, since it supports QoS, which is critical if you have applications like VoIP which rely on QoS.
Hi Zakaria,Kindly note, there is a new technology "MPLS" which considered a frame relay, but the only difference that its FREE of cost, all it needs is an internet connection and an up ip loop interface "the MPLS is useful for many connections without any cost, and its faster as the router routes as fast as switching".
point of view
vpn is better than frame relay because
less of cost and speed and security
for my opinion
for huge company frame relay better but for small one the VPN better