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Layer 2 WAN link vs Layer 3 WAN

Hi, the company where I work has a combination of layer 2 WAN links and layer 3 WAN links.

Could someone please explain the difference between the two, and in what circumstances you would use each type?

Does layer 2 means the links are switched with MAC addresses and layer 3 is routed via IP addresses?

Thanks
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Answering your question by the way, yes this is right...
Layer-2 means basically that the frames are being switched based on MAC addresses rather than IP addresses in the packets for layer-3 services.

The infrastructure over which these services run can rely on a broad range of technologies, either layer-2, layer-2.5 (MPLS) or pure layer-3 or sometimes SONET/SDH for unoversubscribed layer-2 services.

Depending on the services you're planning to use over the network, oversubscription and QoS requirements, you might prefer a carrier over the other depending on their backbone and service design.

Be mindful also that layer-3 services comes with more intelligent service portals from the carriers cause they have higher visibility into the network...

HTH,
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Thanks very much for the info.

I need to put a plan together for a smaller network for about 250 users and about 3 ESXi hosts, with Avaya VoIP. I was planning on using a Cisco 4500 for the core with Cisco 2960S as the access. To save costs it has been suggested to use 2x3750s for the core switches. Normally I would stack the two 3750s together to effectively make them act as one switch, but it’s been suggested that the two 3750s should have layer 3 link between them, but I don’t really understand why. Would it be because you can then do QoS etc between the two switches? Would that make the two 3750s on different subnets/VLANS?

For my own knowledge; Is the reason for using layer 3 instead of layer 2 between switches in this manner so you have features like QoS? I think I’ve read that you should do layer 3 between core switches, and distribution switches to core switches. So would each level of switch effectively be on its own subnet/VLAN?

Sorry if this is a dumb question :-)
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Excellent, thank you.

One last thing I don’t quite understand fully – if you had, say, 2x3750s as your core, why would you put a layer 3 link between them both and not just put them both together in a stack?

Surely the bandwidth between the two switches in a stack is significantly more than just trunking two 1Gb ports together?
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Thanks for all comments
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Routers

A router is a networking device that forwards data packets between computer networks. Routers perform the "traffic directing" functions on the Internet. The most familiar type of routers are home and small office cable or DSL routers that simply pass data, such as web pages, email, IM, and videos between computers and the Internet. More sophisticated routers, such as enterprise routers, connect large business or ISP networks up to the powerful core routers that forward data at high speed along the optical fiber lines of the Internet backbone. Though routers are typically dedicated hardware devices, use of software-based routers has grown increasingly common.

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