A VLAN is a group of end stations in a switched network that is logically segmented by function or application, without regard to the physical locations of the users. VLANs have the same attributes as physical LANs, but you can group end stations even if they are not physically located on the same LAN segment.
Any switch port can belong to a VLAN, and unicast, broadcast, and multicast packets are forwarded and flooded only to end stations in that VLAN. Each VLAN is considered as a logical network, and packets destined for stations that do not belong to the VLAN must be forwarded through a router. The following figure shows VLANs as logical networks. The stations in the engineering department are assigned to one VLAN, the stations in the marketing department are assigned to another VLAN, and the stations in the accounting department are assigned to another VLAN.
Figure 1. VLANs as Logically Defined Networks
VLANs are usually associated with IP subnetworks. For example, all the end stations in a particular IP subnet belong to the same VLAN. To communicate between VLANs, you must route the traffic.
By default, a newly created VLAN is operational; that is, the newly created VLAN is in the no shutdown condition. Additionally, you can configure VLANs to be in the active state, which is passing traffic, or the suspended state, in which the VLANs are not passing packets. By default, the VLANs are in the active state and pass traffic.
A VLAN interface, or switched virtual interface (SVI), is a Layer 3 interface that is created to provide communication between VLANs. In order to route traffic between VLANs, you must create and configure a VLAN interface for each VLAN. Each VLAN requires only one VLAN interface.
See the Interfaces Configuration Guide, Cisco DCNM for LAN, Release 5.x , for complete information on configuring VLAN network interfaces and subinterfaces, as well as assigning IP addresses. This feature must be enabled before you can configure VLAN network interfaces.