A local area network (LAN) is a single broadcast domain. When traffic is broadcast, all hosts within the LAN receive the broadcast traffic. A LAN is determined by the physical connectivity of devices within the domain.
Within a traditional LAN, hosts are connected by a hub or repeater that propagates any incoming traffic throughout the network. Each host and its connecting hubs or repeaters make up a LAN segment. LAN segments are connected through switches and bridges to form the broadcast domain of the LAN. Figure 20 shows a typical LAN topology.
Figure 20: Typical LAN
Virtual LANs (VLANs) allow network architects to segment LANs into different broadcast domains based on logical groupings. Because the groupings are logical, the broadcast domains are not determined by the physical connectivity of the devices in the network. Hosts can be grouped according to a logical function, to limit the traffic broadcast within the VLAN to only the devices for which the traffic is intended.
Suppose a corporate network has three major organizations: engineering, sales, and support. Using VLAN tagging, hosts within each organization can be tagged with a different VLAN identifier. Traffic sent to the broadcast domain is then checked against the VLAN identifier and broadcast to only the devices in the appropriate VLAN. Figure 21 shows a typical VLAN topology.
Figure 21: Typical VLAN