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BGP/MPLS VPN was initially defined in RFC2547, which was later obsoleted by RFC4367 and updated by some other RFCs.
2547oDMVPN is also known as MPLS VPN over DMVPN. This solution extends MPLS VPN to the branches. The branches in this deployment are connected to the hub through a Layer 3 SP service, a tunneled model using GRE is needed to extend MPLS to the branches. DMVPN provides two key advantages for extending MPLS VPNs to the branches, bulk encryption and a scalable overlay model. DMVPN allows the hub to have a single multipoint GRE tunnel interface to support large numbers of spokes. Cisco recommends that to seamlessly extend the enterprise MPLS Layer3 VPN network to the remote branches(Spokes), the DMVPN hub should be a P device to label switching packets between the hub and the branches.

The MPLS network requires packets to be label switched all the way between source PEs and destination PEs. Running MPLS over DMVPN tunnels makes the remote branch router a full function PE router, which means label imposition is done in the branch router and label switching must be performed all the way between spokes. This requirement make the direct spoke-spoke communication impossible due to the lack of a label allocation mechanism on the dynamically created spoke-spoke tunnels. However, label switching between spoke PE routers can easily be done if spoke-hub-spoke switching path is implemented. With this approach, the hub router act as a MPLS P router, maintains the LDP neighbor relationship, and exchanges label allocation information with all spoke routers. The hub router label switches the packets in-and-out the mGRE interface between the spokes. So we have to use DMVPN Phase 1 design for this deployment, where spoke-to-spoke traffic traverse the hub.

While this solution breaks the benefit of dynamically building spoke-to-spoke tunnels, it provides an acceptable and often more deterministic path for spoke-to-spoke communications and meets the segmentation requirement. It is a very attractive solution when the large enterprise needs to extend their MPLS-segmented data center or large campus to remote branches.

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