The main goal of this work was to determine what the software defined networks and virtual local networks are, and more importantly to test performance of virtual local networks compared to “ordinary” local networks. It is stated that software defined networks put software management in the centre of attention, unlike the standard networks which centre around physical devices. The network architecture consists of three layers: physical, control and application layer. Some of the main reasons why SDN should be used are: the possibility of programming if necessary, the ability to control the whole network from a single location and better and safer services. Along with the SDN, a special protocol named OpenFlow has been created. It is used for controlling the data stream. The aim of this concept is to simplify networks and devices, and to facilitate the work of developers who monitor and maintain these networks. One of the great benefits of the program controlled networks is virtual local area networks. It can be said that they are a group of network devices that are logically within the same multicast domain, this means that devices within the same VLAN can be physically remote. The VLAN are logically divided into different network broadcast domains so that packages are exchanged between ports that are set to the same VLAN. Packages sent to the switches are labelled as belonging to a particular network for which they are intended. The main benefits are: the division of broadcast domains without the need for devices such as the transport layer routers, it is easier to group network users by their purpose through the interface, i.e., under certain conditions, and properly assign rights to resources and the possibility of setting a logical gate without the need for physical changes ,i.e. It is an easier way to add,delete or modify users in the network. Also, the work explains how to set up all the necessary software and environment,topology,etc., so that anyone reading the paper would be able to repeat the test and assure himself of performance improvements of VLAN in relation to the ordinary local area network.