Switching Hubs or Switches

A switch is a small device that joins multiple computers together at a low-level network protocol layer.
Technically switches operate at layer two (Data Link Layer) of the OSI model.
Switches look nearly identical to hubs but a switch generally contains more "intelligence" (and a slightly higher price tag) than a hub.
Unlike hubs switches are capable of inspecting the data packets as they are received determining the source and destination device of that packet and forwarding that packet appropriately. By delivering messages only to the connected device that it was intended for switches conserve network bandwidth and offer generally better performance than hubs.
Like hubs switches primarily are available for Ethernet come in a range of port configurations starting with the four- and five-port models and support 10 Mbps Ethernet 100 Mbps Ethernet or both.
Ethernet networks rely on contention-based technology for accessing the network.
Devices can only transmit data on the network when the network is free.
However when more and more devices are added to a network the amount of free time available keeps diminishing.
Also by adding more devices the problem of collision may arise.
Moving to system to a switched Ethernet system can solve the problem.
In order to do this we have to replace all the hubs with switches.
This is a very cheap option as well which is much less than what it would cost you to move to a higher bandwidth system.
If we had to move to a faster Ethernet system you would have to replace all the hubs network cards and also the media or transport.
This turns out very expensive.