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Good quote about VLAN's

"VLANs, a method of creating independent logical networks within a physical network, are critical to hosting providers, because "clients in the dedicated market are very, very concerned about security," Huber said. "They want their environment to be as close as possible to a physical dedicated server." Virtualization takes care of operating system isolation, while a VLAN insulates a system from traffic on the remainder of the network."