A subnetwork, or subnet, is a logical subdivision of an IP network. Dividing a network into two or more networks is called subnetting.
Computers that belong to the same subnet are addressed with an identical group of its most significant bits of their IP addresses. This results in the logical division of an IP address into two fields: the network number or routing prefix and the rest field or host identifier. The rest field is an identifier for a specific host or network interface.