BGP on loopback
As we have already mentioned, our overlay routing design is called BGP on Loopback.
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Every Spoke establishes a single IBGP session towards each of the Hubs serving its region.
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This IBGP session is terminated on the loopback interface, which uniquely identifies each SD-WAN node (Hub and Spoke).
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The Spoke advertises its LAN prefix(es) over this single IBGP session per Hub.
The following diagram illustrates a LAN prefix 10.0.2.0/24, which is advertised by a Spoke “site1-2” to its Hub “site1-H1”:
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As can be seen, a single BGP route is generated for each prefix (in our example: 10.0.2.0/24).
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BGP next-hop (NH) is the loopback IP of the originating Spoke (in our example: 10.200.1.2).
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In a Dual-Hub region, a copy of this route is advertised to each Hub.
To fully understand how this route is resolved, we must elaborate on a proprietary extension that has been implemented to support this design. See IKE extension: exchange-ip-addrv4.