Pros and cons of LAN and WAN networks for businesses: Which one is right for you?

Companies must always be connected and have access to the internet. Therefore, selecting the appropriate network for your company is essential to guaranteeing smooth communication and cooperation between staff, partners, and clients.

Businesses seeking a strong and dependable internet connection frequently choose between Local Area Networks (LAN) and Wide Area Networks (WAN). To make an informed choice while looking for a “business internet service provider near me,” it’s critical to weigh the advantages and disadvantages of LAN vs. WAN.

Benefits of LAN and WAN network use for companies


Businesses may need different networking solutions as they expand. Scaling up or down as needed is possible with LAN and WAN networks. While WAN networks can handle more locations or higher bandwidth needs, LAN networks may be readily extended by adding more devices and switches.

This scalability guarantees that, without needing large expenditures, your network infrastructure may change to meet the changing demands of your company. 


Local area networks (LANs) are intended to offer fast internet access inside a certain geographic region, such as a school or office building. This minimises latency for enterprises running data-intensive apps, streaming films, and transferring huge files.

WANs, on the other hand, link several LANs across great distances to provide distant partners and branches access to the internet at a fast speed. Due to the longer distances involved, WANs might not be as fast as LANs, but they still provide a lot of speed advantages over conventional internet connections. 


As LANs require less complicated equipment and less recurring expenditures than WANs, they are typically more inexpensive for small organisations. However, by pooling resources and lowering the requirement for redundant infrastructure, WANs can provide cost benefits for bigger enterprises with many locations. The decision between LAN and WAN is based on your budget and unique business needs. 


To guard against unauthorised access and online threats, both LAN and WAN networks use a variety of security measures. To protect sensitive data, LANs frequently use network segmentation, firewalls, and access restrictions. To safeguard data sent over long distances, WANs often provide extra security features like encryption and secure VPN connections. 

Centralised management

Businesses can easily manage and keep an eye on devices, users, and data thanks to LAN networks’ centralised management of their network resources. In addition to lowering the possibility of illegal access, this streamlines network management. Conversely, WANs enable the centralisation of data and applications across several sites, which enables companies to save overhead expenses and simplify IT support. 

Remote access

Employees may access company resources from any location with an internet connection thanks to WAN networks’ remote access features. This makes it possible for travelling staff, satellite offices, and remote workers to collaborate and be more productive. 

Enhanced communication

Voice over IP (VoIP), video conferencing, and instant messaging are just a few of the communication apps that are supported by LAN and WAN networks. Regardless of their physical locations, these technologies allow for real-time communication between partners, clients, and workers, enhancing teamwork and decision-making. 

Resource sharing

When devices are connected, LAN and WAN networks make it easier for them to share resources. This minimises the need for duplicate equipment and fosters employee cooperation by allowing staff members to share printers, file servers, and other peripherals. Centralised control systems facilitate the effortless access and management of shared resources. 


LAN and WAN networks may be made to specifically fit your company’s requirements. Optimising network settings, security protocols, and application support may be necessary to ensure compatibility with your current infrastructure and maximise performance. You may optimise the return on your investment by creating a bespoke solution with the assistance of a seasoned network provider. 


High levels of dependability are built into both LAN and WAN networks, guaranteeing that your company stays connected and running even during periods of high consumption. Implementing redundancy measures, including backup connections and failover systems, can improve network stability even further. 

10 drawbacks for firms utilising LAN and WAN networks 

Intricate arrangement

LAN and WAN network setup and configuration can be challenging, especially for companies without in-house IT knowledge. A smooth installation may be ensured, and the process streamlined by collaborating with an expert IT service provider.

These providers can evaluate your company’s needs, create an appropriate network architecture, and manage setup and installation, freeing you to concentrate on your main business functions. 

⮚  High initial costs

Buying software and installation services are just a few of the major upfront expenses that come with setting up a LAN or WAN network. Small firms may find these costs intimidating. However, you may find affordable options that meet your unique requirements and financial limits by doing your homework and choosing the best business internet service provider. To help with the initial cost, some providers could give leasing alternatives or flexible payment plans.


To assure peak performance and avert issues, WAN and LAN need to be maintained regularly, just like any other kind of technological infrastructure. This can include hardware replacements, troubleshooting and software upgrades. A managed service provider might help your internal IT staff manage network maintenance easily.  

Restricted bandwidth

WAN might face restricted bandwidth during occasions of heavy demand, which may influence the functionality and speed of the network. Upgrade to a dedicated connection to equally disseminate traffic to assist in lower bandwidth problems. Increasing bandwidth usage might even be attained by optimising your network setting in collab with your internet service provider.  


When a network is unavailable, it can seriously impair corporate operations, resulting in lost revenue and decreased productivity. Purchasing from a reputable ISP is essential to reducing the likelihood of outages. Furthermore, putting in place redundancy measures like failover systems and backup connections can aid in preserving network availability during unforeseen outages or times of high traffic. 

Dependency on service providers

Companies that use wide area networks (WANs) may be reliant on the reliability and efficiency of their service providers. If the internet providers encounter outages, service interruptions, or other problems, this might pose dangers. Select a reliable provider with a pragmatic track record and customer service system to lower this risk.

In the case, that there are issues with the service provider, you must even think of putting failover systems as well as backup networks in place to ensure the network is operational.  

Security risks

Malware, hacking, and data breaches are a few of the cyber issues that WAN and LAN may encounter, even with proper security measures in place. To counter such attacks, employ prudent security measures like access restrictions, network segmentation and firewalls to protect your network as well as confidential business data.

Enterprises can gain from and yet witness specific restrictions from both WAN and LAN. For small businesses, LAN provides quick connection, cost-effectiveness, and centralised control; for bigger companies with distinct locations, WAN facilitate improved communication, remote access as well as scalability.

Companies must, however even factor in any possible disadvantages, which can involve costly setup charges, complex maintenance needs, downtime, security threats, bandwidth limitation and dependency on internet service providers.

Are you an Entrepreneur or Startup?
Do you have a Success Story to Share?
SugerMint would like to share your success story.
We cover entrepreneur Stories, Startup News, Women entrepreneur stories, and Startup stories

Read business articles related to Sales, Marketing,  Advertising, Finance, Entrepreneurship, Management, Education, and Industry at SugerMint.