A LAN is a local network and is defined by the fact that all devices are located in the same broadcast domain.

• A LAN connects computers that are located in close proximity to each other.
• A LAN is a closed network within a building or company premises. The range is thus limited to a few kilometres. The number of connected subscribers is known. The operator can also specify the technology used. These factors simplify the network management considerably.
• For example, two computers connected in an office or in two buildings with a high-speed line can be regarded as LAN. A corporate network over several adjacent buildings can also be regarded as a LAN.

Traditional LAN segmentation maps all segments to the same broadcast domain, effectively reducing network efficiency.