The capability to encrypt or compress the traffic over network links, thus improving the security of the link on the performance of the links, and the capability to encrypt/decrypt data stored on the storage devices without requiring specialized hosts or storage devices. In a first embodiment, traffic to be routed over a selected link needing encryption and/or compression is routed to hardware which performs the encryption and/or compression and returned for transmission over the link. A complementary unit at the second end of the link routes the received frames to complementary hardware to perform the decryption and/or decompression. The recovered frames are then routed to the target device in a normal fashion. In a variation of this first embodiment the hardware is developed using an FPGA. This allows simple selection of the desired feature or features present in the switch. The switch can be easily configured to perform encryption, compression or both, allowing great flexibility to a system administrator. In a second embodiment frames can be encrypted by a switch and then provided to the storage device in this encrypted manner. The frames from the storage device are decrypted before provision to the requesting host. By performing the encryption and decryption in the switch, conventional hosts and storage devices can be utilized.