A local area network is a private network in a localized area that an organization or individual owns, controls, and manages. A LAN is generally within a restricted geographic area such as a corporate office, manufacturing plant, or healthcare facility and shares resources. The LAN provides high-speed bandwidth using Ethernet technology on a fixed frequency, connecting network devices and enabling the ability to communicate and exchange data on a common channel:

Within the LAN, the network might have a data center, which is a large group of servers that provide storage, processing, and distribution of critical company data for network clients. The data center is the heart of any enterprise network and is located in a central location, generally in a secure computer or server room.

In today's large, multifaceted companies, there may be a larger network than a LAN that requires remote locations to serve all of the clients. The following section takes a look at the concept of a CAN.