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A virtual LAN (VLAN) operates at Layer 2 and groups hosts with a common set of requirements that communicate as if they were attached to the same broadcast domain, regardless of their physical location. In large networks, VLANs are implemented with the goal of reducing the size of the collision domain and thus improving performance. VLANs are usually associated with an IP subnetwork.
More information about configuring VLANs can be found in the following URLs:
Catalyst 3560-E Switch Software Configuration Guide, 12.2(55)SE: www.cisco.com/en/US/docs/switches/lan/catalyst3750x_3560x/software/release/12.2_55_se/configuration/guide/swvlan.html
Catalyst 6500 Release 12.2SX Software Configuration Guide: www.cisco.com/en/US/partner/docs/switches/lan/catalyst6500/ios/12.2SX/configuration/guide/vlans.html