What is a WAN and LAN network: types and advantages for companies

Understanding what a WAN and a LAN are is important because both can be very useful to businesses. If you will know what a WAN is, it simply means wide area network, and sometimes it is referred to as local area network, which is LAN.

Today, computer networks are in charge of various day-to-day activities, among which connecting different places with agility, precision, and total security is the main one. Such connectivity could support operations carried out by large corporations, making great distances seem smaller.

For a large area, a Wide Area Network (WAN) comes into play. For a single location, an internal network, the Local Area Network (LAN), is in place. Both have characteristics suitable for dealing with the management of complexity at both levels.

In this context, it is essential to understand what a WAN and LAN network are and we will help you below.

What is a LAN network?

A local area network (LAN) is confined to a small area, usually within a single building. Its main characteristic is its geographic limitation. Wi-Fi networks in small businesses and home areas are examples of LANs.

What is a WAN network?

A Wide Area Network (WAN) is a technology that connects a large network and interconnects offices, applications, cloud storage, and more . Unlike a LAN, WANs can span large buildings, such as a campus.

Large firms or expanding companies should be aware of what a WAN network is, for, soon enough, they will need WANs to connect their offices.

Differences between LAN and WAN

In addition to understanding the definitions of LAN and WAN networks, one needs be aware of their primary distinctions. In general, in addition to the fact that WAN has a greater range than LAN, they also have differences in cost, speed and security. Check out the main differences:

  • Cost: because it extends over a greater range, the WAN network is more expensive than the LAN;
  • Speed: LANs are faster because they cover a shorter distance and therefore have less congestion;
  • Security: WAN network is more secure than LAN, and that is why it is widely implemented in companies.

Companies that prioritize the protection of data and confidential information choose to implement WAN networks. However, because it requires a higher cost, LAN is a network more suitable for small businesses.

Types of WAN networks

WANs can be divided into two groups: wired and wireless. Some examples of wired WAN connections are circuit switching and packet switching — leased lines are used to form a WAN.

It is also important to mention SD-WAN, which are software-defined WANs. They are specific for wide-range networks and are managed by a central controller, which manages the variety of LAN connection links to find the best paths for sending information.

Advantages and disadvantages of WAN and LAN

It is vital to bear in mind that the pros and cons associated with wide area network (WAN) and local area network (LAN) selection aid businesses across various industries and market niches.

Some important aspects when evaluating the best network are to consider security, costs, connection level, configuration and how they are used. Check out some of the main details below:

Advantages of LAN networks

The LAN network has lower costs compared to the WAN network. It also stands out for its high connection speed, ideal for carrying out various internal operations.

Disadvantages of LAN networks

Even though it has a high connection speed, the Local Area Network (LAN) has a limited range and may not be efficient for carrying out large operations and other activities.

Advantages of WAN networks

Among the main advantages of the WAN network, connectivity over long distances is not the only one that stands out. Its flexibility for multinational companies is also a factor that makes it widely implemented.

Disadvantages of WAN networks

Even though they have a great reach, high costs can be a problem, especially for companies that are just starting out. Another negative point is the complex configuration that the network can present.

How to choose WAN and LAN networks for each type of company?

To choose between the two options for your company, you need to understand your operational needs . In places like a hospital or educational institution, networks can be LAN. WAN networks, on the other hand, can be used by multinationals that communicate with branches that are miles away.

How important is SD-WAN?

SD-WAN is a software-defined WAN, specifically for networks that cover large areas. In general, these are WANs managed by a central controller. In this context, there is software that controls the traffic in which messages travel, which ensures greater precision and agility in communications.

The main benefits of SD-WAN for businesses include security, cost savings, and cost-effective delivery of business applications. These are crucial points that make its implementation highly beneficial for companies of different sizes.

Each of them has its own advantages and disadvantages, but both are of great importance for business managers and entrepreneurs who want to increase productivity and ensure greater protection.

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