Virtual LANs (VLANs) divide your local network logically, rather than relying only on physical switches and routers. This gives you a wonderful level of flexibility. Physically subnetting a LAN requires multiple routers, or routers with multiple network interfaces, and multiple switches. With VLANs you can segment your network and make changes without being limited by hardware. You can create intricate blends of both physical and logical subnets until either your head explodes, or everything works happily.
Link: enterprisenetworkingplanet.com
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