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Networking has many advantages. Not only can one share a number of documents and business intelligence over a secured network, a niftily done setup can optimize computer performance as well.

For a small business enterprise, a LAN can be the best cost optimization tool. It can eliminate the wastage of time in running around the office for printouts or documents. Also, software installed on one computer can be accessed through the network.

Besides, the least cost and many strategic benefits, LAN can be set up easily as well. Let’s have a look at the process.

Setting Up a LAN
Before one starts installing the network, it is important to asses the length of the wires or the location of wireless routers for maximum coverage. Therefore, plan the placement of the computers beforehand. Alternatively, decide the ports and get them fixed. Later, computers can be placed as per the ports.

While finalizing the placement of the computers, in case of a hardwired network, ensure that the CAT-5 cable does not run more than 250 feet. Use CAT-6 for longer distances, as they are considered secure for 600 feet.
A hardwired network depends on Ethernet cards and CAT-5 cables, and a router (under certain conditions) with the proper CAT-5 connection attached. A CAT-5 cable is specially made for secure network connections.

Do It Yourself
As most computers come with Ethernet cards and are capable of allowing physical access to both hardware as well as data, there is no need to invest in them. So, once the framework is ready, get on with the task:

Set up the router: The router is the brain of any network. It helps computers to communicate with the internet. The router assigns a unique IP address to every computer in the network. For installing it, connect it with the modem and distribute the line through it.

Configuring the LAN: With the latest operating systems, such as Windows XP and above versions, configuring a LAN is a fairly straightforward task. Consider changing the OS—such as Windows 95/98/Me—to higher versions to configure your network easily.

Check whether all the lines are hooked properly, only then move onto the setup:
 Go to Start. Select control panel. Click on network setup wizard.
 This opens up a wizard to guide you through the process. Click next.
 A new dialog box opens up asking you to ensure that all lines are hooked up correctly. If all is connected properly, click next.
 Select “Set up a home or small office network” option and click next.
 Now select the connection method and click next.
 Now assign your computer a name so that it can be identified on the network. Click next.
 Now assign a name to the network so that in case a new network is established, each one can be identified. Click next.
 The wizard now confirms the settings. Go through them carefully and validate them.

The wizard gets into action once confirmed and the configuration starts as per the defined parameters. Once the configuration is done, you can share internet access as well as files if you wish to.

Through this network, you can connect the internet to one or multiple computers. While doing so, prefer a wired network if security is a concern.

Activating the Internet on the Network through a Single Computer
Once the network is set up, connecting the internet to the host computer can facilitate internet connectivity across the network. To begin, shut down the computer and connect the network cable, provided by the internet provider, to the computer. Connect the other end to the modem. Now restart the computer and it will automatically recognize the connection to the internet.

Reaching Out To More Computers
This is when wall plugged extenders come into the picture. Shut down the computers that are to be connected to the internet. Connect the cable to the wall plugged network extender and the computers.

Now connect the line extender with the modem, router or switches. Switch on the computers and they should recognize the internet connectivity. If they don’t, then look for loose cables. Also ensure that the modem is switched on.

For Wireless Networks
The process largely remains the same. Install the wireless router or access points. If the laptops or computers have wireless compatibility, they will recognize the network instantly. Else, you may have to buy adaptors to make your computers wireless compatible.

Remember that if you have a dial up connection, you might not be able to set up a wireless network, as it primarily runs on a phone line.

Be Smart With Networks
An ‘Ethernet’ LAN has many security issues. As it is a broadcast system, information that is sent on a segment is potentially readable by anyone on that segment. People can, in fact, read the passwords and login for fraudulent activities. It is for this reason that security measures must be taken to guarantee a secured network for business communications.

Hardware Solutions
Switched network: A switched network segregates the network and its traffic into various parts, thereby avoiding snooping. They are also effective at maintaining the speed of the network by limiting messages to only that part of the network which requires those messages.

Bridges and routers: These two gadgets are filters that pass a message only when the destination is on the other side of the filter. Think of them as gatekeepers that let you in once you announce the name of the person you wish to meet, provided he’s present in the house. They are effective at curbing snooping.

LAN Security Architecture (LSA): This is a technique in which messages are scrambled and only the true recipient receives the unscrambled message. Therefore, even if someone gets the message, it is illegible.

Software Solution
Encryption: The most popular encryption methods are PGP (Pretty Good Privacy). Such software encrypt all forms of communications between computers and work in a similar way to LSA. Only the addressed recipients receive a readable message.

Authentication: Through a validation process, networks can limit access to authorized users only. For this, usernames and passwords are required. Encrypt the passwords and make timestamps. This makes forgery extremely difficult.

Combination technologies: Many new methods, such as timestamps, digi-checks, revolving passwords, tickets and encryption, are being used to further reduce the chances of LAN encroachment.

Remember that for an SME with less than five computers, a wired network works best, as there is very little traffic on the LAN and computer efficiencies are multiplied as well. For more than 10 computers, one can consider wireless LANs or a hybrid setup of wired and wireless LAN.

Latest technologies, such as WiMAX or WiBro, cost very little (as low as Rs.299 for four computers). If internet connectivity is more important than internal networking, SMEs can consider these as viable options.

©Entrepreneur May 2011

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