I noticed there are a few provider offers Vlan solutions. Can someone point out whats the main advantage of setting up Vlan between servers??

Other people on the network won't be able to see the traffic on your server. In other words, your password that are transfered in clear text can not be compromised.

VLANs give you the ability to create "virtual" switches inside a switch to help decrease broadcast traffic and to increase security.

The main reasons people use VLANs is for communication in the backend of their site, or server network.

A site might have 4 web servers, but it would use a VLAN to connect to a cluster of DB servers with a different network card.
that way, all web traffic is handled by the primary nic card.

Another good use is to use it for server backups.. To make sure your server backs up fast without interfering with your real traffic, a VLAN could be used to connect to SAN or Tape library.

My 2cents

Rahul

What about if I have two servers and I want to set them up to share a 15mbps capped connection. Is that possible and is that how you do it??

Well you don't need to use a VLAN for that..

Basically that 15mbps would go to a switch, where then two 10/100 lines would go to your boxes.

To use a VLAn you'd install a secondary nic on each computer and connect each to another switch (not necessary, but would reduce load on your main switch, if you use a big cisco switch, you're good to go with one)

This secondary network would be used for communicating between servers. Any transfer through this net is all yours and doesnt touch the 15mbps line.

Rahul

Are we all talking about the same thing here?

VLANs are also great because you can move the physical computer without having to reconfigure any hardware.

VLANs are also great because you can move the physical computer without having to reconfigure any hardware.That is a new one, care to elaborate?