A networking system and automatic method in a networking system comprising at least one switching device and a plurality of at least one end-station interconnected with the at least one switching device, wherein the at least one switching device and at least one end-station are interconnected in a topology. A configuration device is included which has a configuration modification detection circuit for detecting the modification of the topology. A configuration policy maintenance circuit is provided for storing policies related to reconfiguring the at least one switching device upon the modification of the topology. A policy evaluation circuit is provided for determining which at least one end-station and ports should be grouped together upon the detection of the modification of the topology in a first manner. A reconfiguration circuit is provided for reconfiguring the at least one switching device in the first network to enable at least one end-station and ports to be grouped together in the first manner. Virtual local area networks may be created/extended/deleted during the reconfiguration to provide networking services to the at least one end-station.