Layer 3 Switches

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Layer 3 switches can be placed anywhere in the network because they handle high-performance LAN traffic and can cost-effectively replace routers. Layer 3 switching is all hardware-based packet forwarding.
The benefits of layer 3 switching include the following:
arrow Hardware-based packet forwarding
arrow High-performance packet switching
arrow High-speed scalability
arrow Low latency
arrow Lower per-port cost
arrow Flow accounting
arrow Security
arrow Quality of Service (QoS)

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