Sometimes it is advisable to divide a single physical LAN into two or more LANs connected by routers. Reasons for doing so could include isolating traffic for increased security, reducing traffic for better performance and improving administration through segmentation. With subnets, different technicians can divide the network maintenance workload and any network damage can often be confined to one subnet. Such a segmented topology requires different IP (Internet protocol) network IDs for each LAN.
Without subnets, each LAN would require a network number depleting the limited number of IP addresses available. Internet routers would also become clogged by having to track all these addresses that could be better managed locally.
Each 32-bit IP address has two parts: the network number and the local machine (host) in the network. If some host bits specify a subnet the address would effectively contain three parts: network number, subnet number and machine number. This tripartite address is the result of interaction between the address class and a subnet mask.
A packet reaches an organisation's gateway (Internet connection point) if its network number matches that of the gateway. The packet is then routed by applying a binary mask (a pattern of 1s and 0s). This allows the router to expedite the packet by reading only the relevant portion of the address.
Although subnetting is widely used and valuable, most LANs with less than 50 nodes have no need to subnet, unless special intranet servers require it. Subnetting is documented in RFC 950. ( www.ietf.org/rfc/rfc950.txt).
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