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The customer needs to connect three sites (site Alpha being the central site – the hub) and orders connectivity between Alpha (Hub) and Beta (Spoke) and between Alpha (Hub) and Gamma (Spoke). The Service Provider implements this request by providing two PVCs across the Frame Relay network. Copyright  2000, Cisco Systems, Inc. MPLS VPN Technology 2-11 Layer-3 routing in Overlay VPN implementation Router A Router B Router C Router D • Service Provider infrastructure appears as point-topoint links to customer routes • Routing protocols run directly between customer routers • Service Provider does not see customer routes and is responsible only for providing point-to-point transport of customer data © 2000, Cisco Systems, Inc.

Overlay VPN IP Tunneling Internet Protocol (IP) Generic Route Encapsulation (GRE) IP Security (IPSec) Internet Protocol (IP) VPN is implemented with IP-over-IP tunnels • Tunnels are established with GRE or IPSec • GRE is simpler (and quicker), IPSec provides authentication and security © 2000, Cisco Systems, Inc. com Page19 With the success of Internet Protocol (IP) and associated technologies, some Service Providers started to implement pure IP backbones to offer VPN services based on IP. In other cases, the customers want to take advantage of low cost and universal availability of Internet to build low-cost private networks over it.

The routing is also extremely simple – static routing or distance-vector protocol like RIP are more than adequate. If you are using dynamic routing protocol like RIP, splithorizon must be disabled at the hub router, or you must use point-to-point subinterfaces at the hub router to overcome the split-horizon problem. Copyright  2000, Cisco Systems, Inc. MPLS VPN Technology 2-27 Overlay VPN Redundant Hub-And-Spoke Remote site (spoke) Central site (HUB) Service Provider Network Redundant Central site router Remote site (spoke) Redundant Central site router © 2000, Cisco Systems, Inc.

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