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First, subnetting is the act of splitting a natural (classful) into smaller subnetworks. Supernetting is act of aggregating (combining) 2 or more networks (CIDR). Now, you subnet when you do not have a lot of hosts, but for admin reasons (more than 1 location for example) you want multiple networks so you can route. You aggregate for 1 of two reasons. Either you have a large network and want to simplify your core routing, or the answer you are looking for, you need more hosts in a network so that it can be flat (switched) and you don't need a router. I tend to agree with Brian, more than 1024 devices on a network can be trouble.
supernetting:Supernetting, also called Classless Inter-Domain Routing (CIDR), is a way to aggregate multiple Internet addresses of the same class. The original Internet Protocol (IP) defines IP addresses in four major classes of address structure, Classes A through D. Each class allocates one portion of the 32-bit Internet address format to a network address and the remaining portion to the specific host machines within the network. Using supernetting, the network address 192.168.2.0/24 and an adjacent address 192.168.3.0/24 can be merged into 192.168.2.0/23. The "23" at the end of the address says that the first 23 bits are the network part of the address, leaving the remaining nine bits for specific host addresses. Supernetting is most often used to combine Class C network addresses and is the basis for most routing protocols currently used on the Internet. Supernetting was created as a way to solve the problem of routing tables growing beyond the ability of current software and people to manage and to provide a solution to the exhaustion of Class B network address space. Supernetting allows one routing table entry to represent an aggregation of networks much like one area code represents an aggregation of telephone numbers in an area. difference between subnetting and supernetting SUBNET: subnet is a group of networks having same network id. subnet increase the number of hosts with same network address, as result it reduces the wastage of addresses.

In subnetting bits of hostId will be captured by networdId. SUPERNET: supernet makes all the hosts with in a range of network address belong to a same group. This reduces the entries in the network address table. Supernetting combines the octets of the address. Supernetting combines smaller, classful network address blocks together to create a large logical network that can support more computers without the need for a router. Subnetting divides classful networks into smaller address blocks supporting more logical networks with fewer hosts in each one. subnetting- it works on host bits, for incresaing or decresing the number of valid host in network. supernetting- it works on network bits, for increasing or decreasing the number of subnetworks from majour networks

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