What Is a LAN?

From AllBusiness.com*

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    A local area network (LAN) is a group of interconnected computers that share the same geographic location, such as an office. This is opposed to a wide area network (WAN), which connects computers over greater distances, and would be used to link branch offices.

    Each computer connected to a LAN is able to access the other connected computers' hard drives, as if they were installed internally. Also, you can connect your LAN to a file server, which is specifically designed to house shared files and resources for all the networked computers to access.

    The Hardware
    The most common type of networking standard is Ethernet, which encompasses a number of variations. Current Ethernet standards are 10BaseT, which transmits data at up to 10Mbps, 100BaseT, which operates at up to 100Mbps, and the newer 1000BaseT, which reaches speeds up to 1000Mbps.

    The hardware that makes up an Ethernet LANs consists of the following devices:

  • PCs. To set up a LAN you'll need to connect at least two computers.

  • Cable. Earlier Ethernet networks used coaxial cable, though now the most common type is CAT-5, a twisted-pair type of cable that looks like a jumbo version of a typical telephone wire. The CAT-5 cable plugs into the network adapters in each computer, then into a hub.

  • Hubs. Hubs are simple devices that have anywhere from four to several hundred ports that you plug your computers into. The hub is the point where all the computers are connected.

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  • NICs. Each networked computer will need a network interface card (NIC). NICs plug into a computer’s PCI slot and are generally easy to install.

    • The Software
    Besides having the right hardware devices, you must also install a software networking protocol. The most commonly used protocol is Transmission Control Protocol/Internet Protocol (TCP/IP), the same one used for the Internet. Most Windows and Macintosh systems come with TCP/IP pre-installed, so once you have the right hardware in place, you only need to configure the networking properties.

    Applications that use TCP/IP to communicate, such as your email program, will work as soon as you've configured the networking properties. And since file-sharing is built into the operating systems, swapping files between two Windows computers or between two Macintosh computer is relatively easy. If you want to share files between Windows and Mac, however, you'll need special software, such as Miramar Systems PC MacLAN.

    *AllBusiness.com provides resources to help small and growing businesses start, market, manage and expand their business. The site has Forms & Agreements, Business Guides, a Platinum Program and Business Directories along with an extensive library of Articles and Advice to help with all of the activities associated with starting and running a business. Copyright © 1999 - 2005 AllBusiness.com, Inc., All Rights Reserved.


    		 
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