WAN vs Lan Understanding the difference in the network types

When we talk about setting up networks, there are two options that businesses generally choose from – LAN and WAN. Each powered by its functionalities and elements, forms a crucial component of a company’s IT infrastructure. With both LAN and Wan serving different goals, it is critical to understand their differences (and similarities) so that businesses can make the best network choice. 

In this article, we will look into the different elements that would help you decide the best network model for your business. 

The definitions 

Local Area Network  – It is a network of devices which are connected by common communication lines. All of these devices are usually placed close to each other in the same office complex or residential building. The LAN network enables devices to share their resources such as printers, files, and apps while powering communication between them. 

For transmitting data through Local Area Network, three topologies come into the forefront –

• Bus topology – in this topology, the devices get connected to one cable and the data gets transmitted through it when the destination address matches the enclosed address. 
• Star topology – in this topology, several workstations are linked to one central hub in the shape of a star. When a device wishes to communicate with other workstations, it should send data via the central hub. 
• Ring topology – here the devices get connected in a circular system and data gets transmitted across the ring before reaching its destination. 

Wide Area Network – WAN meaning lies in it being a telecommunication network which connects devices across multiple locations around the globe. For example, companies having multiple locations across the nation can use WANs to link their offices and enable their employees to access resources from any locality. 

The network model uses leased lines, satellite links, and MPLS to secure easy data transfer between the devices. 

The infrastructure elements used in Wide Area Network comprise routers, switches, transmission lines such as satellite links, fibre optic cables, wireless connections; and several other networking equipment.

The network type transfers data through either of the two ways – point-to-point (P2P) connections and shared circuits using packet-switching. In the P2P connections, the packets sent from one direction get delivered to the other with Layer 2 of the OSI model. 

What is the difference between LAN and WAN?

The difference between LAN and WAN can be seen in multiple facets – connections, security, sizes, cost, and speed. Here’s a tabular view of the differences between the two popular network types. 

While these are the core elements where you can see a comparison between WAN and LAN, there are some similarities as well. 

How are Local Area Networks and Wide Area Networks alike?

Despite the differences in the two network models, there are some key similarities between LAN and WAN as well. Let us look into what they are. 

• Two or more nodes get connected – For both WAN and LAN, you would require two or more connected computing nodes. These nodes can be a user device and server, two user devices, or an office appliance and a network endpoint. 
• Both use TCP/IP protocols – Even though both WAN and LAN have varied foundational technologies, they both depend on the TCP/IP model. It is a combination of internet protocols and connectivity standards that divides the network system into four layers – transport, application, internet, and network access laters. 
• Both can benefit from the cloud – Software-defined networking approach tends to apply cloud-based networking to both LAN and WAN. This, in turn, can help companies lower their hardware footprint and dependency on IT personnel. This leads to immense cost, time, and effort savings. 
• Both are prone to security breaches – both LAN and WAN are prone to security breaches and hacks. Every time you connect a device to a network, a threat vector gets added which can lead to an entry of malicious entities. In the modern day, network providers build a solution that is secured via network access control, VPNs, secure network policies, and hardware, and software firewalls. 

Now that we have looked at both – the differences and similarities between LAN and WAN, we are sure you must be wondering when to use which network type. 

Use cases of WAN and LAN 

LANs are great for establishing connections between closely located devices. Here are the different use cases – 

• One office building
• Families 
• Manufacturing unit
• Collaboration and eSports 
• Retail office

WANs are deemed the best options when the business needs to provide connectivity outside a specific locality. Here are the different applications for it – 

• Remote or hybrid workforce management 
• Cloud connectivity 
• Warehouses
• Colleges under one university 
• Different retail outlets under one brand

Ultimately, the answer to which network model is best suited for your business would depend on your business needs. If you are a small-scale business operating out of one building, LAN will prove to be the best choice. On the other hand, WAN would be best if you are a huge corporation with multiple offices, usually in different cities or countries. 

With this, we have looked into multiple facets of LAN vs WAN – how the two network models work, the differences and similarities between them, and ultimately how to choose the best approach for your business. We hope that you have all the information needed to make the right decision. Once you do, we suggest looking into the best network providers and ensuring that their offering meets your short and long-term needs.