Shared resources can also be virtual. Application programs can reside on a server machine and be available to all users on the network. Databases can reside on a database server which is made available to multiple users. Virtual storage capacity can be made available to all users. Resource sharing usually results in a cost savings to the network owner.
Networks ease the cost of communicating with the outside world also.
Having multiple computers at home or in an office connected in a network makes it easy to share the outside connection to the Internet or to another location. Adding a router or switch to a network allows one to share the communication connection between all the computers on the network. This is a real cost saving for the home or small office user. There are two primary topology techniques used today in the layout of networks. They are token ring and Ethernet.