hub vs. switch

Shared versus dedicated channels. In an Ethernet network, every client, server and network device is wired to a hub or switch. A hub shares the total bandwidth among all users, while a switch provides a dedicated line at full bandwidth between every two devices transmitting to each other. In the 1990s, switches were much more costly than hubs, and devices were carefully evaluated based on the traffic requirement. By the turn of the century, switches became much less expensive, and the popularity of hubs began to wane.

In a small home or office, a hub is generally sufficient. However, if many users are always sending large files to each other, the switch eliminates congestion.

source: pcmag