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Nested vpn, Background, Figure 64 – H3C Technologies H3C S10500 Series Switches User Manual

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Figure 64 Scenario where the Level 2 carrier is an MPLS L3VPN service provider

CAUTION:

If equal cost routes exist between the Level 1 carrier and the Level 2 carrier, H3C recommends establishing
equal cost LSPs between them.

Nested VPN

Background

In an MPLS L3VPN network, generally a service provider runs an MPLS L3VPN backbone and provides

VPN services through PEs. Different sites of a VPN customer are connected to the PEs through CEs to

implement communication. In this scenario, a customer’s networks are ordinary IP networks and cannot

be further divided into sub-VPNs.
However, in actual applications, customer networks can be dramatically different in form and complexity,

and a customer network may need to use VPNs to further group its users. The traditional solution to this
request is to implement internal VPN configuration on the service provider’s PEs. This solution is easy to

deploy, but it increases the network operation cost and brings issues on management and security

because of the following:

The number of VPNs that PEs must support will increase sharply.

Any modification of an internal VPN must be done through the service provider.

The nested VPN technology offers a better solution. It exchanges VPNv4 routes between PEs and CEs of

the ISP MPLS L3VPN and allows a customer to manage its own internal VPNs.

Figure 65

depicts a nested

VPN network. On the service provider’s MPLS VPN network, there is a customer VPN named VPN A. The

customer VPN contains two sub-VPNs, VPN A-1 and VPN A-2. The service provider PEs treat the

customer’s network as a common VPN user and do not join any sub-VPNs. The customer’s CE devices
(CE 1, CE 2, CE 7 and CE 8) exchange VPNv4 routes that carry the sub-VPN routing information with the

service provider PEs, implementing the propagation of the sub-VPN routing information throughout the

customer network.