Local Area Networks: What They Are and How to Use Them

Have you ever wondered how short-range devices communicate with one another? The answer lies in LAN, an abbreviation for a local area network. 

Privately owned and supervised, a local area network uses Ethernet or Wi-Fi technology to connect computing and network devices. LAN also facilitates internet and file sharing among computing devices.

According to a report by California-based market research firm DataIntelo [1], experts expect the global market for LAN-as-a-Service (LANaaS) to expand at a compound annual growth rate of 16.2 percent between 2017 and 2030.

Read on to learn more about local area networks, the different types, the pros and cons of using LANS, and how to set one up.

What is a local area network (LAN)?

Tech giant IBM describes LAN as “a communications system that allows the interconnection and sharing of resources between independent devices within a moderately sized geographic area” [2]. 

Typically, external regulations do not limit communication within a local area network. However, the same is not true for government-operated LANs. For instance, the General Services Administration (GSA) has a policy to help secure its internal wireless local area network [3].

Several factors can affect the speed of a LAN, including the type of LAN cables or router in use.

Did you know? You can enjoy maximum data transfer speeds of up to 1,000 Mbps with a wired LAN [4].

Where are LANs utilized? 

Offices, schools, cafes, and homes use LANs to connect multiple devices such as computers, printers, and servers.

You’re right to assume LANs are versatile; a LAN's size can range from a home network with a single user to an enterprise network with thousands of users and devices. However, the crucial aspect that defines a LAN is connecting devices in a confined, restricted area.

How do LANs work? 

Ethernet and Wi-Fi are two distinct network technologies that enable a LAN connection. 

Ethernet is the most widely used physical layer LAN technology. It uses Ethernet cables or wires to connect to a network, while Wi-Fi enables connection via radio waves.

Based on requirements, you can configure LANs using bus, star, or ring network topology. LANs connect to the internet through a central point like a router, with home networks typically using a single router and larger enterprise networks utilizing network switches. Access points, cables, and servers are other fully functioning LAN network components. 

Different types of LANs 

LANs are either client/server or peer-to-peer based on their architecture. However, before you comprehend these LANs, you’d want to understand what a server is. 

A server, physical or virtual, provides dedicated network services. For a server to function adequately, it must have two essential software components: an operating system and an application.

Now that you understand servers, it’s time to explore client/server and peer-to-peer LANs. 

Client/server LANs

A client/server LAN has multiple devices (clients) connected to a central server. The central server supervises device access, file storage, application access, network traffic, and more. Clients can access the central server through a wired or wireless connection. Client/server LANs are commonly used in mid-to-large-sized organizations such as businesses, governments, research facilities, and educational institutions.

Peer-to-peer LANs

A peer-to-peer (P2P) LAN doesn't rely on a central server and is usually smaller in size than a client/server LAN. Most notably, each device in a peer-to-peer LAN holds equal responsibility in managing the network. Switches or routers enable the sharing of data and resources through wired or wireless connections across all devices in a network. Peer-to-peer LANs are commonly used in home networks.

Pros and cons of using a LAN

LANs have several benefits. But they also have limitations. The following are a few notable pros and cons of this computer network. 

Benefits

• Instead of buying individual licenses for each client in your network, you can share a single licensed software installed on a central PC. All clients in a network can access the software.

• Wireless LANs, or WLANs, enable centralized data management, making it easier for network administrators to handle data.

Disadvantages 

• While LANs can be cost-effective in the long run, the initial implementation costs can be high.

• LANs are vulnerable to security breaches if not properly secured.

Learn the difference: LAN vs. MAN vs. WAN 

Several types of computer networks exist.  Below is a comparison between LAN, MAN, and WAN, which are characterized by their size or area of operation. 

LAN

A local area network (LAN) is typically set up at a singular location, such as a private residence, university campus, or office building. The close proximity of network components facilitates the establishment of high-speed connections.

MAN

A MAN, or metropolitan area network, links computer users with resources over a geographic region corresponding to a metropolitan area, which could encompass an entire city. A MAN has a larger reach than a LAN.

WAN

A WAN, which stands for wide area network, encompasses a vast geographical area, spanning a whole country or even the entire globe. A WAN is larger than a MAN and LAN.

Here are some additional distinguishing features of LAN, MAN, and WAN.

How to set up a LAN 

To set up a LAN, you will need a router, Ethernet cables, a computer, devices, a broadband connection, a router, and a modem (if internet access is desired). Here’s a rundown of the procedure you’ll need to follow to configure a LAN.

1. Router setup: Plug in the network router and turn it on. If it's a new router, follow the setup instructions provided to prepare it for use.

2. Computer setup: Use an Ethernet cable to connect your computer to the router.

An automatic setup wizard should guide you on a Windows PC. On a Mac, access the router setup through System Preferences.

3. Wi-Fi setup: Your broadband connection's automatic setup wizard should help configure your Wi-Fi connection. Follow the steps to establish internet connectivity. Once Wi-Fi is set up, devices connected via Ethernet cables should also have internet access.

4. Password: Password-protect every device connected to the LAN to ensure secure internet access. You may also install firewalls for added security.

5. Connecting additional devices: You can connect any device requiring internet access to your LAN, such as a laptop, printer, or smartphone. Test the LAN to ensure that all devices are properly connected and can communicate with each other.

Remember that the specific steps you need to take may vary depending on the type of LAN you want to set up and the network devices you're using.

Learn more with Coursera.

Devices connected via LAN can share a common internet connection, exchange files, and even access or control each other. Learn more about the intricacies of a local area network with the Peer-to-Peer Protocols and Local Area Networks course offered by the University of Colorado on Coursera. This course, which takes approximately 15 hours to complete, will introduce you to key LAN standards, including IEEE 802.3 Ethernet LAN and IEEE 802.11 wireless LAN.