What is a local area network (LAN)? A local area, or LAN, is a network of computers and linked devices that all share a single internet connection. Some LANs are as small as a private home network. In other cases, a LAN comprises an enterprise network of computers, access points, routers and switches — thousands of end users and their devices connected in a close physical area like a building. Users, often employees, can share files, applications, software programs and even physical devices like printers. This sharing process helps companies save time and money while avoiding the need to provide every employee with individual internet access.
What is LAN used for?
White-collar businesses typically utilize a LAN to offer internet access for internal employees. Besides fast internet speeds, LANs offer capabilities like secure file sharing and file transfer, instant messaging and a safe space for software applications. The introduction of wireless technology, including Wi-Fi, made LAN technology the communications and data storage solution it is today, resulting in WLAN. It revolutionized the modern work setup, allowing your computer to communicate with other devices on the same network. Over time, network administrators have equipped LANs with encryption, firewalls and other cybersecurity best practices to protect against common cyberattacks.
How do LANs work?
Most LANs connect to the internet via a router, which allows multiple devices to share an internet connection. Residential LANs typically require only a single router, while large commercial LANs rely on network switches to deliver data directly to each device. Here are some LAN variations businesses commonly deploy:
- Subnets: A network separated into different sections, allowing traffic to flow more efficiently across business networks with millions of end users.
- Virtual LAN (VLAN): A connection that partitions physical or wireless LANs, creating an overlay that groups devices under a single, virtual network.
- Wireless LAN (WLAN): Devices connected through wireless radio transmission, not wired cable. Each LAN variation delivers its own advantages. For example, a WLAN network reduces the number of wires you need to set up a local network. However, the data transfer rate will decrease as more devices join the network.
Setting up a local area network
Setting up a LAN can help accommodate employee demand for file sharing, internal communications and access to local IoT devices like printers. Some businesses set up local area networks to enhance security, upgrade existing technology or simply provide secure channels for internal communication. Here are a few steps to follow when setting up a local area network:
- Conduct a needs assessment: Determine the number of users and devices — and the potential amount of data — the LAN must sustain.
- Design the network: Choose between a wired or wireless connection method and plan IP addressing.
- Select your hardware: Identify your LAN's physical needs, from devices to connection hardware like switches, routers, and cables.
- Install cabling: Lay down Ethernet cables for your future LAN. Work with a certified technician if you plan to bury cables underground.
- Configure network devices: Assign IP addresses by designating a unique host portion for your router, to configure all of your devices for the LAN. Set up any wireless access points as necessary. Be sure to test a newly set up LAN before connecting it to all devices and users. Run a full security audit that tests factors like network speeds, evaluates password strength and updates software.
Hardware requirements
A successful local area network requires the right hardware. Here are some of the essential hardware components a LAN needs:
- Network interface controller (NIC): An onboard device component that provides network connection through a physical and a data link layer.
- Server: Hardware that accepts and responds to network requests for online files.
- Switch: Hardware that connects devices to other devices within the same network.
- Router: A device that provides wireless connectivity and connects one or more devices to the same network.
- Wireless access point (WAP): Hardware that allows devices to connect to a network, sometimes extending network access beyond the router's original range.
- Modem: A network device that codes and decodes data as it's transmitted between network-enabled devices. The exact hardware you'll need will depend on LAN size, specifications and architecture. For example, a wireless LAN requires access points and extenders. Wired LAN setups need cables, connectors and switches. Star LAN topologies — where each network component is physically connected to a central node — require a point-to-point connection between that node and connected devices. A mesh network connects nodes together, requiring additional wireless delivery points, like routers, to extend across the geography of an entire home or business.
Network configuration
Setting up a LAN requires the proper hardware and proper configuration to uphold security and network speeds. If you're working alongside a network administrator, you'll also need direction on assigning IP addresses to specific devices. Static IP addresses are typically used for servers or other shared devices on your network. Your LAN also needs domain name system (DNS) credentials that link a domain name, like a website with a .com address, to an IP address. Linking your domain name and website requires a DNS server, particularly in an enterprise environment where multiple DNS servers prevent a single point of failure. This streamlines user activities like web browsing.
Security considerations
LANs provide internet communication, file sharing and security capabilities for all users and their devices. Today, network security is a necessity for protecting those files and devices. The right network security strategies can also help you avoid internal threats. For example, network segmentation features set appropriate user access in ways that prevent illicit data access. This also helps prevent cybercriminals from accessing your LAN through an IoT device like a smart thermostat or printer.
What is a managed LAN?
Managed networks are ideal for businesses that do not want to manage a LAN internally. Instead, they outsource LAN management responsibilities to a third-party vendor, allowing internal IT to spend more time on business operations. A managed LAN offers several advantages over an internally-managed network:
- Your IT team has more bandwidth for more pressing challenges.
- You can leverage expertise from vendors that specialize in network defense.
- You pay for IT services without covering additional IT team member salaries and benefits.
- Vendors automatically upgrade to the latest in network security standards. Many LAN service providers also offer more niche expertise than an internal IT team might offer, and they offer it 24/7. Businesses can access LAN experts at short notice to address any concerns, or to scale their network up or down as demands change.
LAN vs. WAN: What's the difference?
As businesses expand, they often need to link devices, share files and add users beyond the limits of what a single LAN can offer. Wide area networks (WANs) provide more bandwidth by linking LANs and their users to shared databases. WANs often connect LANs that are distributed geographically. While a LAN might connect users within the same building or square block, WANs connect users who might be distributed in different locations, and even on different continents. Wide area networks can handle file transfer, communication and other essential functions at larger volumes. They link LANs, no matter the physical distance, helping users from around the world share resources. Both local and wide area networks are also available as a standalone service for companies that don't want to actively manage network infrastructure. Unlike LAN-as-a-service, WAN-as-a-service uses both wired and wireless technology to offer dedicated connectivity, without limitations from a public broadband connection.
Setting up the right network for your business
Installing a LAN isn't always a straightforward process. You'll need to diagnose your company's network needs, purchase the right hardware, correctly link devices and proactively monitor network behavior for security concerns. Companies today rely on a variety of managed network services, including managed WAN, to keep up with business demands. A local area network satisfies many of those demands, providing employees with a secure channel for communication, file sharing and access to local devices like printers. While hardware requirements, security protocols and network configuration specifics can vary, LANs improve connectivity and productivity across an entire workforce.
