An unmanaged switch is a type of network switch that allows Ethernet devices to communicate with each other by providing a connection to the network. It is designed to be simple and easy to use, with no settings to configure. Unmanaged switches are most often used in small networks with only basic needs, such as those found in homes, small offices, or small businesses. They are also useful for adding temporary groups of systems to a larger network. Unmanaged switches use autonegotiated ports to determine parameters such as data rates and whether to use half-duplex or full-duplex mode. Additionally, unmanaged switches have no concept of virtual LANs (VLANs), so all devices belong to the same broadcast domain.

In contrast, a managed switch is fully configurable and customizable, providing a range of data on performance. Managed switches are suitable for larger networks and networks supporting critical activities, such as enterprise-level businesses, government agencies, universities, and healthcare organizations. They offer greater control over the settings of the switch, including controls over LAN traffic, prioritizing certain channels, and creating new virtual LANs to keep smaller groups of devices segregated and to better manage their traffic. Managed switches also offer redundancy features that duplicate and recover data in the event of a device or network failure. Managed switches cost more than unmanaged switches, but there are different levels of complexity and cost for businesses of all sizes. A third type of switch, called smart managed switches, offers a compromise between cost and features and is suited for small businesses that have limited budgets.