NetBEUI (NetBIOS Extended User Interface) is a networking protocol developed by IBM and Microsoft for local area networks (LANs). It is designed for small networks and provides a simple way for computers to communicate with each other without the need for complex configurations. NetBEUI operates at the transport layer and is known for its ease of use and low overhead. Although NetBEUI is easy to set up, it has limitations, such as a lack of routing capabilities and scalability issues. As networks grew larger, more robust protocols like TCP/IP became preferred. Today, NetBEUI is rarely used in modern networking environments.