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When you send e-mail to a friend on the other side of the country, how does the message know to end up on your friend's computer, rather than on one of the millions of other computers in the world? Much of the work to get a message from one computer to another is done by routers, because they're the crucial devices that let messages flow between networks, rather than within networks.
Let's look at what a very simple router might do. Imagine a small company that makes animated 3-D graphics for local television stations. There are 10 employees of the company, each with a computer. Four of the employees are animators, while the rest are in sales, accounting and management. The animators will need to send lots of very large files back and forth to one another as they work on projects. To do this, they'll use a network.
When one animator sends a file to another, the very large file will use up most of the network's capacity, making the network run very slowly for other users. One of the reasons that a single intensive user can affect the entire network stems from the way that Ethernet works. Each information packet sent from a computer is seen by all the other computers on the local network. Each computer then examines the packet and decides whether it was meant for its address. This keeps the basic plan of the network simple, but has performance consequences as the size of the network or level of network activity increases. To keep the animators' work from interfering with that of the folks in the front office, the company sets up two separate networks, one for the animators and one for the rest of the company. A router links the two networks and connects both networks to the Internet.