The network switch plays an integral part in most modern Ethernet local area networks (LANs). Mid-to-large sized LANs contain a number of linked managed switches. Small office/home office (SOHO) applications typically use a single switch, or an all-purpose converged device such as a gateway to access small office/home broadband services such as DSL or cable internet. In most of these cases, the end-user device contains a router and components that interface to the particular physical broadband technology. User devices may also include a telephone interface for VoIP.

An Ethernet switch operates at the data link layer of the OSI model to create a separate collision domain for each switch port. With 4 computers (e.g., A, B, C, and D) on 4 switch ports, A and B can transfer data back and forth, while C and D also do so simultaneously, and the two conversations will not interfere with one another. In the case of a hub, they would all share the bandwidth and run in half duplex, resulting in collisions, which would then necessitate retransmissions. Using a switch is called microsegmentation. This allows computers to have dedicated bandwidth on a point-to-point connections to the network and to therefore run in Full duplex without collisions.

[edit] Role of switches in networks

Switches may operate at one or more layers of the OSI model, including data link, network, or transport (i.e., end-to-end). A device that operates simultaneously at more than one of these layers is known as a multilayer switch.