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Network segmentation is now crucial in cybersecurity, helping contain threats and prevent lateral movement during breaches. Many IT managers acknowledge its importance but are unsure how to implement it. Managed switches are vital, justifying their higher cost. If network segmentation seems complex, this guide will help you make it manageable and effective with existing or prospective switches. It explains a simple, scalable VLAN-based strategy that enhances security and supports smarter switching investments.
So, why are managed switches essential for segmentation? Because they provide the control plane you need to create, configure, and enforce VLANs. Here's what managed switches offer that unmanaged switches don’t:
Feature | Managed Switch | Unmanaged Switch |
VLAN Configuration | Yes | No |
Port Security | Yes | No |
802.1Q Trunking | Yes | No |
QoS & Traffic Prioritization | Yes | No |
Remote Management | Yes | No |
Without managed switches, you cannot implement true segmentation.
Network segmentation splits a network into isolated parts to prevent malware spread, protect sensitive data, and enhance traffic control. In a flat network where all devices share the same domain, a single compromised device can be dangerous. Segmenting into VLANs creates virtual switches, isolating groups for added security.
VLANs solve two major problems:
Creating a VLAN on a managed switch involves more than just labeling; it effectively creates a virtual switch within your physical device. Here’s a look at what occurs behind the scenes:
Many IT pros confuse VLANs with IP subnets, and while they often work together, they operate on different layers of the network:
Feature | VLAN | Subnet |
OSI Layer | Layer 2 (Data Link) | Layer 3 (Network) |
Purpose | Logical segmentation within switches | IP addressing & routing logic |
Separation Method | MAC address & VLAN ID | IP address and subnet mask |
Needs Routing? | Yes, to talk between VLANs | Yes, to talk between subnets |
You typically assign one subnet per VLAN:
The VLAN separates traffic on the switch, while the subnet tells routers and firewalls how to handle traffic between VLANs.
Combining VLANs with subnets allows for the implementation of network-layer security policies, including firewall rules, access controls, and DHCP scope separation.
By design, devices in different VLANs are isolated, enhancing security. However, there are cases when specific traffic needs to pass between VLANs. This is where inter-VLAN routing becomes useful.
Inter-VLAN routing is the process of routing traffic between different VLANs, using:
Firewall rules should tightly control Inter-VLAN routing:
Let’s take a simple example of a small office network. You want to isolate:
Below is a basic network diagram of how that looks with VLANs configured on managed switches.

Let’s walk through how to configure this using typical managed switches. In the top diagram, each VLAN is assigned a distinct IP subnet; at this point, we have created the VLAN on the switch.
As you can see, three VLANs were created, and now we should assign each switch’s port to a specific connection VLAN.
Now, check the status of VLANs.
We have now created the VLANs. In the next stage, we will set up the Switch Virtual Interface (SVI).
A Switch Virtual Interface (SVI) is a logical Layer 3 interface on a switch, tied to a specific VLAN. It allows the switch to route traffic between VLANs without relying on an external router.
An SVI acts as the virtual gateway for devices in a VLAN, enabling communication beyond their network. The switch can route traffic between VLANs directly by assigning an IP address to the SVI.
Setting up an SVI is straightforward; assign an IP address to a VLAN Interface on your managed switch. This IP acts as the VLAN’s gateway, enabling devices within the VLAN to access other networks via the switch.
When you run the show ip route command, the switch should display a routing table listing all connected VLAN networks and their gateways. Let's run the command.
Surprisingly, the switch does not automatically add routes to the routing table. This is because it still operates at Layer 2. To switch to Layer 3 mode and populate the routing table with VLAN networks, you must run the ip routing command and check the routing table again.
As you can see, nothing has happened again. Why? Let's do some troubleshooting with the bot.
As shown, three VLAN interfaces have been shut down automatically. After entering the no shut command on each SVI, the switch has now populated the routing table with data from the SVIs. Now, clients in different VLANs can communicate with each other, provided their gateways are correctly configured for their respective VLANs.
Router-on-a-Stick is a network configuration that allows communication between clients on different VLANs through a single physical interface on a router.
Can I add a firewall instead of a router to a router-on-a-stick setup?
NGFW firewalls combine routing and security features, allowing them to perform inter-VLAN routing and filtering simultaneously.
Assuming the switch we configured has three VLANs and connects to a Cisco ASA firewall, the first step is configuring the interface connected to the ASA as a trunk port.
Next, configure the ASA port connected to the Switch. Cisco ASA firewalls do not support SVIs (Switched Virtual Interfaces) like a Layer 3 switch or router. Instead, you configure subinterfaces on a physical interface to manage multiple VLANs, similar to SVIs, but specific to ASA.

The guide explains network segmentation with on-premises hardware, focusing on managed switches, VLANs, and routing to improve cybersecurity through traffic isolation, threat containment, and preventing lateral movement. Using examples like a small office network, it shows how VLANs, subnets, and inter-VLAN routing enhance security and traffic control. It combines concepts with step-by-step config, making it useful for IT managers aiming for scalable, secure networks.