MPLS VPN Architecture and Terminology

In the MPLS VPN architecture, the edge routers carry customer routing information, providing optimal routing for traffic belonging to the customer for inter-site traffic. The MPLS-based VPN model also accommodates customers using overlapping address spaces, unlike the traditional peer-to-peer model in which optimal routing of customer traffic required the provider to assign IP addresses to each of its customers (or the customer to implement NAT) to avoid overlapping address spaces. MPLS VPN is an implementation of the peer-to-peer model; the MPLS VPN backbone and customer sites exchange Layer 3 customer routing information, and data is forwarded between customer sites using the MPLS-enabled SP IP backbone.

The MPLS VPN domain, like the traditional VPN, consists of the customer network and the provider network. The MPLS VPN model is very similar to the dedicated PE router model in a peer-to-peer VPN implementation. However, instead of deploying a dedicated PE router per customer, customer traffic is isolated on the same PE router that provides connectivity into the service provider's network for multiple customers. The components of an MPLS VPN shown in Figure 3-3 are highlighted next.

Figure 3-3. MPLS VPN Network Architecture

The main components of MPLS VPN architecture are

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