This document discusses virtual LANs (VLANs) and their benefits over traditional physical LAN segmentation using routers. VLANs allow logical grouping of users by functions instead of physical location. VLANs are managed by layer 2 switches which tag frames with VLAN IDs to keep traffic separate. A router or layer 3 switch is needed to route between VLANs. VLANs create separate broadcast and address tables to isolate traffic for improved security and bandwidth utilization.