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VLSM Example

In all of the previous examples of subnetting, notice that the same subnet mask was applied for all the subnets. This means that each subnet has the same number of available host addresses. You can need this in some cases, but, in most cases, having the same subnet mask for all subnets ends up wasting address space. For example, in the Sample Exercise 2 section, a class C network was split into eight equal-size subnets; however, each subnet did not utilize all available host addresses, which results in wasted address space. Figure 4 illustrates this wasted address space.
Figure 4
Figure 4 illustrates that of the subnets that are being used, NetA, NetC, and NetD have a lot of unused host address space. It is possible that this was a deliberate design accounting for future growth, but in many cases this is just wasted address space due to the fact that the same subnet mask is being used for all the subnets.
Variable Length Subnet Masks (VLSM) allows you to use different masks for each subnet, thereby using address space efficiently.

VLSM Example

Given the same network and requirements as in Sample Exercise 2 develop a subnetting scheme with the use of VLSM, given:

netA: must support 14 hosts
netB: must support 28 hosts
netC: must support 2 hosts
netD: must support 7 hosts
netE: must support 28 host

Determine what mask allows the required number of hosts.

netA: requires a /28 (255.255.255.240) mask to support 14 hosts
netB: requires a /27 (255.255.255.224) mask to support 28 hosts
netC: requires a /30 (255.255.255.252) mask to support 2 hosts
netD*: requires a /28 (255.255.255.240) mask to support 7 hosts
netE: requires a /27 (255.255.255.224) mask to support 28 hosts

* a /29 (255.255.255.248) would only allow 6 usable host addresses
  therefore netD requires a /28 mask.

The easiest way to assign the subnets is to assign the largest first. For example, you can assign in this manner:

netB: 204.15.5.0/27  host address range 1 to 30
netE: 204.15.5.32/27 host address range 33 to 62
netA: 204.15.5.64/28 host address range 65 to 78
netD: 204.15.5.80/28 host address range 81 to 94
netC: 204.15.5.96/30 host address range 97 to 98

This can be graphically represented as shown in Figure 5:
Figure 5
Figure 5 illustrates how using VLSM helped save more than half of the address space.

CIDR

Classless Interdomain Routing (CIDR) was introduced to improve both address space utilization and routing scalability in the Internet. It was needed because of the rapid growth of the Internet and growth of the IP routing tables held in the Internet routers.
CIDR moves way from the traditional IP classes (Class A, Class B, Class C, and so on). In CIDR , an IP network is represented by a prefix, which is an IP address and some indication of the length of the mask. Length means the number of left-most contiguous mask bits that are set to one. So network 172.16.0.0 255.255.0.0 can be represented as 172.16.0.0/16. CIDR also depicts a more hierarchical Internet architecture, where each domain takes its IP addresses from a higher level. This allows for the summarization of the domains to be done at the higher level. For example, if an ISP owns network 172.16.0.0/16, then the ISP can offer 172.16.1.0/24, 172.16.2.0/24, and so on to customers. Yet, when advertising to other providers, the ISP only needs to advertise 172.16.0.0/16.
For more information on CIDR, see RFC 1518 and RFC 1519 .

Appendix

Sample Config

Routers A and B are connected via serial interface.

Router A

  hostname routera
  !
  ip routing
  !
  int e 0
  ip address 172.16.50.1 255.255.255.0
  !(subnet 50)
  int e 1 ip address 172.16.55.1 255.255.255.0
  !(subnet 55)
  int t 0 ip address 172.16.60.1 255.255.255.0
  !(subnet 60) int s 0
  ip address 172.16.65.1 255.255.255.0 (subnet 65)
  !S 0 connects to router B
  router rip
  network 172.16.0.0

Router B

  hostname routerb
  !
  ip routing
  !
  int e 0
  ip address 192.1.10.200 255.255.255.240
  !(subnet 192)
  int e 1
  ip address 192.1.10.66 255.255.255.240
  !(subnet 64)
  int s 0
  ip address 172.16.65.2 (same subnet as router A's s 0)
  !Int s 0 connects to router A
  router rip
  network 192.1.10.0
  network 172.16.0.0

Host/Subnet Quantities Table

Class B                   Effective  Effective
# bits        Mask         Subnets     Hosts
-------  ---------------  ---------  ---------
  1      255.255.128.0           2     32766
  2      255.255.192.0           4     16382
  3      255.255.224.0           8      8190
  4      255.255.240.0          16      4094
  5      255.255.248.0          32      2046
  6      255.255.252.0          64      1022
  7      255.255.254.0         128       510
  8      255.255.255.0         256       254
  9      255.255.255.128       512       126
  10     255.255.255.192      1024        62
  11     255.255.255.224      2048        30
  12     255.255.255.240      4096        14
  13     255.255.255.248      8192         6
  14     255.255.255.252     16384         2

Class C                   Effective  Effective
# bits        Mask         Subnets     Hosts
-------  ---------------  ---------  ---------
  1      255.255.255.128      2        126 
  2      255.255.255.192      4         62
  3      255.255.255.224      8         30
  4      255.255.255.240     16         14
  5      255.255.255.248     32          6
  6      255.255.255.252     64          2

  
*Subnet all zeroes and all ones included. These 
 might not be supported on some legacy systems.
*Host all zeroes and all ones excluded.