1.1 VLSM  
  1.1.2 A waste of space  
In the past, it has been recommended that the first and last subnet not be used. Use of the first subnet, known as subnet zero, for host addressing was discouraged because of the confusion that can occur when a network and a subnet have the same addresses. The same was true with the use of the last subnet, known as the all-ones subnet. It has always been true that these subnets could be used. However, it was not a recommended practice. As networking technologies have evolved, and IP address depletion has become of real concern, it has become acceptable practice to use the first and last subnets in a subnetted network in conjunction with VLSM.

In this network, the network management team has decided to borrow three bits from the host portion of the Class C address that has been selected for this addressing scheme.

If management decides to use subnet zero, it has eight useable subnets. Each may support 30 hosts. If the management decides to use the no ip subnet-zero command, it has seven usable subnets with 30 hosts in each subnet. From Cisco IOS version 12.0, remember that Cisco routers use subnet zero by default. Therefore Sydney, Brisbane, Perth, and Melbourne remote offices may each have 30 hosts. The team realizes that it has to address the three point-to-point WAN links between Sydney, Brisbane, Perth, and Melbourne. If the team uses the three remaining subnets for the WAN links, it will have used all of the available addresses and have no room for growth. The team will also have wasted the 28 host addresses from each subnet to simply address three point-to-point networks. Using this addressing scheme one third of the potential address space will have been wasted.

Such an addressing scheme is fine for a small LAN. However, this addressing scheme is extremely wasteful if using point-to-point connections.