SNMP (Simple Network Management Protocol) is a protocol used for network management. It uses UDP on port 161 and operates at the application layer. SNMP allows network devices to be monitored and modifications to be made by communicating error and status information through messages. It utilizes manager and agent components along with MIB (Management Information Base) to get, set, and trap operational values. However, SNMP has limitations such as weak security, performance issues for large networks, and lack of support for some advanced management functions.