Just as cities come in different sizes and layouts to meet their residents’ needs, so do computer networks: One size doesn’t fit all. There are several types of networks, each with its own strengths and optimal applications. Understanding some of the common types of networks can help you choose the one that best fits your business’s unique needs.
Personal Area Network (PAN)
A personal area network (PAN) connects devices within a small space (usually within 10 meters or 33 feet) such as a house or apartment. PANs are the smallest, most basic type of network, and are typically used by individuals for personal use, connecting devices such as smartphones, tablets and personal computers.
Example/Use Case. Someone using Bluetooth to connect their smartwatch, wireless headphones, smartphone and laptop would be using a PAN. For example, a small business owner attending a trade show might use a PAN to connect their laptop to a portable printer, or sync their smartwatch with their phone so they can easily see notifications as soon as they’re received.
Local Area Network (LAN)
Local area networks, or LANs, are probably the most well-known type of computer network. Think of a LAN as a small neighborhood within a city: Like the roads connecting the buildings in the neighborhood, a LAN connects devices over relatively short distances (for example, within one building or a group of adjacent buildings).
Example/Use Case. LANs are often used in small offices where employees need to share tech resources such as printers or access the same files on a server. For example, a design firm might use a LAN so team members can collaborate on project files or send their designs to a shared high-quality printer, ensuring efficient resource sharing and seamless collaboration.
Wide Area Network (WAN)
A wide area network, or WAN, is like a system of highways connecting different cities. WANs span large geographical areas and can even connect devices across continents. They’re typically used to connect smaller networks, such as multiple LANs. Their key feature is the ability to connect devices or nodes that are physically far apart.
Example/Use Case. A business with several branch offices across the country or around the world could use a WAN to enable each of its separate locations to share data and resources. For example, a multinational real estate investment firm might use a WAN so employees in its New York and Tokyo offices can access the same databases and collaborate on deals despite the distance between the two locations.
Metropolitan Area Network (MAN)
Similar to a transportation system operating within a single city, a metropolitan area network, or MAN, connects devices within an area that’s larger than a LAN can cover but smaller than the coverage you get with a WAN. They are often used to connect several LANs in a geographic area (for example, different departments on a university campus).
Example/Use Case. A municipal government sharing data and resources among different departments and locations within the city could use a MAN to share data and resources. For example, a MAN could connect the city’s fire department, police department and city hall so they can quickly and efficiently share critical information to better coordinate during emergency situations.
Virtual Private Network (VPN)
A virtual private network, or VPN, functions like a private tunnel within a city’s road system. VPNs provide secure networks to connect devices to the internet in a way that encrypts the data being sent and received and maintains privacy and security. Data traveling over a VPN is more difficult for third parties to intercept or tamper with, making it ideal for businesses that handle sensitive data.
Example/Use Case. VPNs are a good choice for businesses with remote employees who need secure access to the company’s internal network from their home devices. For example, a financial services company might use a VPN to ensure employees working remotely can access any necessary client data securely, so the information stays protected.
Peer-to-Peer Network (P2P)
Similar to a group of neighbors on a city block directly sharing resources with each other instead of using a marketplace, in a peer-to-peer (P2P) network, all computers in the network have equal status and can directly share files with each other without going through a central server. P2P networks are often used to more easily share large files directly between individual users.
Example/Use Case. P2P networks are useful for businesses needing to distribute large files directly between departments or employees without uploading (and possibly overloading) a central server. For example, a film production company could use a P2P network to distribute video files, which are typically very large in size, among its video editors without the need for a central server.
Service Provider Network (SPN)
A service provider network, or SPN, is like a city’s public transportation system. Owned and operated by a service provider, such as an internet service provider (ISP) or a telecommunications company, an SPN is a large-scale network that can span entire countries or even continents. SPNs often offer services such as internet access and cloud-based storage.
Example/Use Case. If a business uses an ISP for internet access or a telecommunications company for phone services, it’s making use of an SPN. For example, a small tech startup might rely on an SPN to connect to the internet, so it can focus on its core operations without needing to divert valuable resources to manage its own network infrastructure.
Cloud Network
A cloud network functions much like shared public spaces within a city, such as parks and community centers. Within a cloud network, data storage and processing is handled by shared servers accessible over the internet, instead of through local servers or individual computers. Examples of cloud network resources include virtual routers and network management software.
Example/Use Case. A business could use cloud-based software for different tasks such as email or document storage. For example, a consulting firm with employees spread across multiple locations might use a cloud network to provide all team members with access to the same communication and project management tools, no matter where they’re located.
