Some vendors offer external network virtualization, in which one or more local networks are combined or subdivided into virtual networks, with the goal of improving the efficiency of a large corporate network or data center. The key components of an external virtual network are the VLAN and the network switch. Using VLAN and switch technology, the system administrator can configure systems physically attached to the same local network into different virtual networks. Conversely, VLAN technology enables the system administrator to combine systems on separate local networks into a VLAN spanning the segments of a large corporate network.
Read more about this topic: Network Virtualization
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