1 Why subnet at all?
Subnetting splits one large IP network into several smaller ones. Three reasons drive it. First, broadcast containment: every host in a subnet shares a broadcast domain, and a broadcast frame reaches every device in it — too many hosts means a storm of broadcast traffic that wastes bandwidth and CPU. Splitting the network into smaller subnets keeps each broadcast domain small.
Second, address efficiency: handing a point-to-point link a full /24 (254 hosts) for two routers wastes 252 addresses. Right-sizing subnets recovers that space. Third, security and policy: subnets are natural boundaries where a router or firewall can enforce access-control rules, so finance, guests and servers can be isolated from one another.