D-Link DES-1226G Manual page 4

VLAN (Virtual Local Area Network)
A VLAN is a group of end-stations that are not constrained by their physical location and can communicate as if a common broadcast domain, a LAN.
The primary utility of using VLAN is to reduce latency and the need for routers, by using faster switching instead. Other VLAN utilities include:
Security: Security is increased with the reduction of opportunity in eavesdropping on a broadcast network because data will be switched to
only those confidential users within the VLAN.
Cost Reduction: VLANs can be used to create multiple broadcast domains, thus eliminating the need of expensive routers.
Port-based (or port-group) VLAN is the common method of implementing a VLAN, and is the one supplied in the Switch.
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