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Switching refers to the process of directing data packets between devices across a network. Two of the main types of switching methods include circuit switching and packet switching. Using the proper switching method for the data transfer you’re performing in your business is crucial to being efficient within your IT department. So to learn more about these two common switching methods, as well as which you need to use and when, keep reading as we compare packet switching vs circuit switching.

What are packet switching and circuit switching?

Circuit switching works by forming a dedicated communication path between two nodes for the duration of a session, ensuring a continuous connection. Circuit switching is generally used for traditional telephone networks because phone calls require consistent, uninterrupted communication.

Packet switching, on the other hand, divides data into smaller packets that are transmitted one-at-a-time through different routes. This type of switching is generally used for data that is transferred over the

How does circuit switching work?

In circuit switching, two nodes must establish a channel before the nodes may communicate. It is a method where the dedicated physical path, or circuit, is connected to 2 nodes or locations for the duration of the connection. Circuit connections are often cited as connection-oriented networks. The main disadvantages of circuit switching include;

  • The link will remain active even when the two devices aren’t sharing data, leading to unnecessary memory waste.
  • It’s much slower than packet switching since it takes time to attach the two hosts prior to the data exchange.

Circuit switching provides the baseline for traditional telephone networks. It can guarantee that the complexities of creating a call are handled within the centralized facilities of a network.

Circuit switching is useful to minimize the delay during phone calls and maintain a great end-user experience. In contrast, packet switching’s ease of use for the end-users can be more difficult than necessary, due to the indirect data transfer.

How does packet switching work?

Packet switching is the transfer of information across different networks and devices. When more than 2 devices/networks are involved, packet switching offers a faster, more efficient data transfer, improving the end-user experience. When a user sends data across a network, it gets transferred as smaller data packets, not in one piece.

Unlike virtual circuit switching, packet switching doesn’t require the deployment of a channel. For the sake of network efficiency, each packet can use a unique route. Despite the high adoption rate across businesses, there are still a few disadvantages of packet switching:

  • It’s not ideal for applications in constant use, such as high-volume voice calls.
  • During times of high traffic, networks can lose data packets.
  • There is a lack of security protocols for data packets during transmission.

Packet switching allows users to share bandwidth resources equally but makes no promises to the speed or completion of the transfer. It’s beneficial for transferring data that doesn’t require real-time responsiveness, such as emails, messages, and websites, where occasional delays aren’t the end of the world.

Packet switching relies on the intelligence of the end nodes to manage the transfer. It uses a straightforward underlying network that directs packets from node to node to reach the receiving device.

Packet switching isn’t ideal for voice or video calls, due to its occasional data loss and/or delays.  It’s still reliable, however, because it attempts to limit loss; packets will be re-sent if they don’t reach the intended destination. And the advantages are hard to ignore; especially when you consider that packet switching doesn’t require a channel to work.

But how do circuit switching and packet switching measure up, head to head?

Packet switching vs circuit switching: what are the differences?

Let’s look at some of the main differences between the two dedicated channels so we can determine which is right for your specific needs.


In circuit switching, there are three phases to consider, establishing a connection, data transfer, and releasing the connection. While in using packet switching, you don’t need to worry about establishing or releasing the connection.

Data destination 

When data is transferred via circuit switching, the information unit knows the total path address provided by the source. Meaning, you know the data rarely fails to reach its destination.

With packet switching, the information unit only knows the ultimate destination and the routers try to find the most convenient path. There are instances where packet switching does “fail”, as the receiving device can easily request the missing packets, eliminating the fear of losing that information.

Data processing

Via circuit switching, data is processed by the source system. In contrast, with packet switching, data is processed by all nearby nodes, including the source system. This means that data can usually be transferred to the destination quicker than if it was transferred via circuit switching.

Delay between units

In circuit switching, there is typically a minimal delay because the network first needs to establish a dedicated transmission path before the data transfer begins, which allows the data to flow continuously.

But in packet switching, while there’s no initial delay due to path setup, data packets can experience varying delays, since they’ll need to travel different routes and can encounter network congestion.

Reserved resources

Resource reservation is the main feature of circuit switching because the trail is fixed for data transmission. There is no resource reservation in packet switching because the bandwidth is shared amongst users.

Data wastage

As circuit switching requires a constant connection, there’s generally a lot of information wastage, especially when compared to packet switching. If you’re experiencing higher levels of usage than normal, look for circuit connections within your RMM that could be draining your network.

Store and forward technique

Packet switching works using a store and forward technique. Using the store and forward technique guarantees cost-effective service, deferred connection (another cost-reducing feature), and requires no physical connection. Circuit switching, on the other hand, doesn’t use store and forward data transfer, since it only transfers data indefinitely from one device to another.


With circuit switching, congestion can occur throughout the connection, as there are cases where the channel is already occupied with another communication. With packet switching, congestion can also occur during the info transfer phase when many packets are trying to be sent at the same time.

Bilateral traffic

Circuit switching can’t handle bilateral traffic, while packet switching was made for handling bilateral traffic. This is one of the main reasons that packet switching is generally more efficient and suited to larger businesses that have significant traffic and data transfer.


In circuit switching, the charge depends on time and distance, not on traffic within the network. But with packet switching, the charge depends on the number of bytes and the connection time. If your business is local but deals with large amounts of traffic, you may be better suited to circuit switching. But mid-level businesses with a wider reach should consider packet switching.

Packet Recording

Packet switching allows for packet recording, which lets you capture and analyze data packets during transmission. This can be very important for network monitoring and troubleshooting. But circuit switching doesn’t allow for packet recording, due to its dedicated path for continuous data flow, you’re not able to isolate individual data packets.

Making your final choice

Overall, packet switching is the more efficient and affordable option for network paths with more vast network connections. Since all the bandwidth is often used simultaneously, packet switching is more efficient because it doesn’t have to accommodate limited connections that may not be using all that bandwidth.

Packet switching can also function with an easy infrastructure compared to circuit switching, and it can quickly respond, should parts of the network break or fail, making it quicker and less expensive to feature new nodes whenever they’re needed.

Depending on your day-to-day business operations, one of these switching methods may be more suitable for your business and its IT needs. Packet switching is affordable, efficient, and has minimal data loss, while circuit switching offers a more reliable data transferIf you haven’t already, at Atera, we offer a 30-day free trial of our all-in-one RMM solution, so there’s no need for inefficiency within your network. Give us a try today, and you’ll be glad you did! Check out our solution for IT departments and for MSPs.

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