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What are the Differences Between VLAN and Subnet?

Created by Deepak Sharma in Articles 3 Feb 2025
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Efficient network management is crucial for both small and large organizations, especially as they grow and require additional security, organization, and performance optimization.

VLANs (Virtual Local Area Networks) and subnets are two methods of segmenting networks that serve distinct but complementary purposes.

In this article, we’ll explore what VLANs and subnets are, their structures, and configurations, and the differences between VLANs and subnets, helping clarify when and how to use each of them for optimal network management.

For a detailed comparison of Subnet vs VLAN, you can check our networking courses, where instructors will explain in detail the purpose of both these technologies.

What is Virtual Local Area Network (VLAN)?

A Virtual Local Area Network (VLAN) is a technology that allows network administrators to segment a physical LAN into multiple logical broadcast domains.

Each VLAN operates as a separate, independent network segment, allowing administrators to group devices logically rather than based on their physical connections. 

For example, Imagine an office with different departments like Finance, HR, and Marketing. With VLANs, administrators can segment each department into its own VLAN, isolating traffic within each group, regardless of their physical location in the building.


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Advantages of VLAN

The use of VLANs provides several benefits: 

1. VLANs conserve network bandwidth by limiting broadcast traffic to specific segments.

2. VLANs protect sensitive information, as they restrict data communication between two VLANs.

3. An issue in one VLAN does not affect other VLANs.

4. Devices can be grouped into VLANs regardless of their physical location, simplifying network management.

What is a Subnet? 

A subnet (or subnetwork) is a logical subdivision of an IP network, typically designed to manage and streamline IP address allocation.

Unlike VLANs, subnets don’t segment the physical network at the hardware level. Instead, they organize IP addresses into smaller groups, which helps route network traffic more efficiently.

Subnetting is an essential concept in managing IP addresses, especially as networks grow and more devices need unique addresses. 

For example, an IPv4 address might look like 192.168.1.1, where the first three numbers (192.168.1) might represent the network, and the last number (1) represents the device within that network. 

Subnet Mask 

Subnets rely on a subnet mask, a 32-bit number that helps define which part of an IP address belongs to the network and which part identifies the device. Subnet masks play a critical role in guiding routers on how to direct packets within a network.

Without subnetting, routers would have to sort through all IP addresses within a large network, slowing down packet delivery. 

Advantages of Subnets 

1. Subnetting speeds up data transmission by reducing travel distance.

2. Limits broadcast traffic, leading to more efficient communication.

3. Isolates segments, making unauthorized access harder.

4. Subnetting allows for easier organization and administration of networks

Key Differences Between VLAN and Subnet

While VLANs and subnets both aim to segment networks and enhance performance and security, they operate differently and are used in various contexts.

Below is a table summarizing the main differences between VLAN and subnet: 

VLAN Subnet
A VLAN divides a physical network into multiple logical segments. It segments network traffic within a broadcast domain and allows devices within the same VLAN to communicate as if they are in the same physical location. A subnet divides an IP network into smaller, manageable segments to optimize routing. Subnets organize traffic based on IP address, reducing traffic between distant network segments.
Operates at Layer 2 (Data Link Layer) of the OSI model and is based on MAC addresses. Operates at Layer 3 (Network Layer) of the OSI model and is based on IP addresses.
VLANs are configured at the switch level, with each Ethernet port associated with a specific VLAN. Subnets are defined by IP addressing and subnet masks, often without physical separation.
Primarily software-based, offering flexible virtual groupings regardless of physical locations. Mainly relies on IP address hardware configuration, keeping traffic within designated IP ranges.
Provides secure, isolated broadcast domains, enhancing network security. Limits traffic based on IP routing for efficient data flow across connected networks.

VLANs vs. Subnets: Use Cases

Let's look at the use case for subnet and VLAN to understand when to use each of them. 

1. VLAN Use Case 

A large corporation may need to isolate traffic between departments like Finance, HR, and Marketing. By assigning each department to a separate VLAN, network administrators can keep traffic within each VLAN, preventing inter-department data exposure and conserving bandwidth. 

2. Subnet Use Case 

Consider a company with offices across multiple cities. By creating subnets for each city, administrators can assign IP address ranges for each site, streamlining traffic flow. Subnetting ensures that data is directed locally within each city network, minimizing delays and conserving overall bandwidth. 

Using VLANs and Subnets Together 

In many cases, VLANs and subnets are used in combination for optimized network segmentation and management. Here’s how this works: 

1. Create VLANs for Network Segmentation: VLANs help separate devices based on department or function, isolating traffic within each logical broadcast domain. 

2. Use Subnets for Routing: Assign a unique IP subnet to each VLAN, providing a structured way to route traffic within and between VLANs when necessary. 

By pairing VLANs with subnets, network administrators achieve both hardware-level and IP-level segmentation, ensuring secure, efficient data flow. 

Conclusion 

In today’s complex networking environments, VLANs and subnets are indispensable tools for network segmentation, each serving distinct purposes.

VLANs are used for separating traffic within the same physical network, making them a go-to for enhanced security and streamlined management. Subnets, on the other hand, organize IP addresses into manageable blocks, optimizing data flow and simplifying IP address management. 

Ultimately, VLANs and subnets can be deployed together to leverage the best of both methods, offering organizations powerful control over network traffic, security, and performance.

Whether used independently or combined, these tools provide the necessary structure to keep large networks efficient, secure, and scalable. 

Difference between Router and Switch | ...»
Deepak Sharma

He is a senior solution network architect and currently working with one of the largest financial company. He has an impressive academic and training background. He has completed his B.Tech and MBA, which makes him both technically and managerial proficient. He has also completed more than 450 online and offline training courses, both in India and ...

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FAQ

No, a VLAN is not the same as a subnet. VLANs operate at Layer 2 for traffic segmentation, while subnets function at Layer 3 for IP address management.
A VLAN should be used when you need to segment network traffic for improved performance, security, and management, especially in environments with multiple departments or functions.
The main difference is that VLANs segment networks at Layer 2 using MAC addresses, while subnets divide networks at Layer 3 using IP addresses for routing and traffic control.
The purpose of a VLAN is to create logical segments within a physical network, allowing devices to communicate securely and efficiently based on shared criteria like function or department.
Disadvantages of VLANs include potential complexity in configuration, reliance on compatible hardware, and challenges in managing inter-VLAN routing effectively.

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