Local-Area-Network is a relatively small network compared to WAN, covering small areas like a room, an office, a building. If you connect two computers for sharing data, you have a LAN. The number of computers connected on a LAN may be up to several hundreds, but most of the time, LANs are made up of more or less a dozen machines. To connect two computers, you may only link them using a cable. If you want to connect more, then you need a special device called a hub, which acts like a distribution and link point. Cables from the different computers’ LAN cards meet at the hub. If you want to connect your LAN to the Internet, then you need a router instead of a hub. Using a hub is the most common and easiest way of setting up a LAN. There are however other network layouts, called topologies. You don’t necessarily have only computers on a LAN. We tend to use certain connectivity technologies, primarily Ethernet and Token Ring.
Most of local area networks are built with relatively index; the history of LAN was actually started by NOVELL. They were doing some small business and want to share the computer resources with each other’s. They actually want to share their data with minimum cost. In that part of time the networks were highly expensive. That was really hard for the Novell to choose one of them. One solution for that was to establish a NetWare the server based network that requires dedicated server but this idea was useless because of the highly priced servers in that era. IPX/SPX networking’s Protocol was used by Novell.
IBM introduced a network that was not really NetWare, so there was not server required for establishing a network. The network was peer to peer and shares data with each other without any central point. This network protocol that was developed by IBM was known as NetBIOS the network were called PCNet. In this way it made the possibility of a fully functional Local Area Network that didn’t need of expensive operates like severs.
After IBM made PCNet, so much reliable and usable by molding it into OS/2 network that was first time compatible with the Microsoft Networking.