Subnetting is the process of dividing a single IPv4 network into multiple smaller networks (subnets) in order to segregate them. This can be done to apply various policies to only nodes in a certain subnet, or simply for segregating groups of nodes from another to block off communication.
Subnetting does have downsides, however. There needs to be a network ID and broadcast ID for each subnet, so for each subnet you lose two usable IPs. If you have enough subnets then you may be limited to a small number of usable hosts per subnet (down to the single digits). The amount of networks and hosts per network depends on the number of bits "borrowed" (noted with the slash notation).
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