Label switching is a high-performance packet forwarding technology that integrates the performance and traffic management capabilities of data link layer (Layer 2) switching with the scalability, flexibility, and performance of network layer (Layer 3) routing.

In conventional Layer 3 forwarding mechanisms, as a packet traverses the network, each switch extracts all the information relevant to forwarding the packet from the Layer 3 header. This information is then used as an index for a routing table lookup to determine the next hop for the packet.

In the most common case, the only relevant field in the header is the destination address field, but in some cases, other header fields might also be relevant. As a result, the header analysis must be done independently at each switch through which the packet passes. In addition, a complicated table lookup must also be done at each switch.

In label switching, the analysis of the Layer 3 header is done only once. The Layer 3 header is then mapped into a fixed length, unstructured value called a label .

Many different headers can map to the same label, as long as those headers always result in the same choice of next hop. In effect, a label represents a forwarding equivalence class --that is, a set of packets which, however different they may be, are indistinguishable by the forwarding function.

The initial choice of a label need not be based exclusively on the contents of the Layer 3 packet header; for example, forwarding decisions at subsequent hops can also be based on routing policy.

Once a label is assigned, a short label header is added at the front of the Layer 3 packet. This header is carried across the network as part of the packet. At subsequent hops through each MPLS switch in the network, labels are swapped and forwarding decisions are made by means of MPLS forwarding table lookup for the label carried in the packet header. Hence, the packet header does not need to be reevaluated during packet transit through the network. Because the label is of fixed length and unstructured, the MPLS forwarding table lookup process is both straightforward and fast.

Each label switching router (LSR) in the network makes an independent, local decision as to which label value to use to represent a forwarding equivalence class. This association is known as a label binding. Each LSR informs its neighbors of the label bindings it has made. This awareness of label bindings by neighboring switches is facilitated by the following protocols:

• Label Distribution Protocol (LDP)--enables peer LSRs in an MPLS network to exchange label binding information for supporting hop-by-hop forwarding in an MPLS network

• Border Gateway Protocol (BGP)--Used to support MPLS virtual private networks (VPNs)

When a labeled packet is being sent from LSR A to the neighboring LSR B, the label value carried by the IP packet is the label value that LSR B assigned to represent the forwarding equivalence class of the packet. Thus, the label value changes as the IP packet traverses the network.

For more information about LDP configuration, see the see MPLS: LDP Configuration Guide at http://www.cisco.com/c/en/us/td/docs/ios-xml/ios/mpls/config_library/xe-3s/mp-xe-3s-library.html

Note	As the scale of label entries is limited in, especially with ECMP, it is recommended to enable LDP label filtering. LDP labels shall be allocated only for well known prefixes like loopback interfaces of routers and any prefix that needs to be reachable in the global routing table.

A Multiprotocol Label Switching (MPLS) Virtual Private Network (VPN) consists of a set of sites that are interconnected by means of an MPLS provider core network. At each customer site, one or more customer edge (CE) routers attach to one or more provider edge (PE) routers.

Before configuring MPLS Layer 3 VPNs, you should have MPLS, Label Distribution Protocol (LDP), and Cisco Express Forwarding (CEF) installed in your network. All routers in the core, including the PE routers, must be able to support CEF and MPLS forwarding.

The QoS EXP Matching feature allows you to classify and mark network traffic by modifying the Multiprotocol Label Switching (MPLS) experimental bits (EXP) field in IP packets.

The QoS EXP Matching feature allows you to organize network traffic by setting values for the MPLS EXP field in MPLS packets. By choosing different values for the MPLS EXP field, you can mark packets so that packets have the priority that they require during periods of congestion. Setting the MPLS EXP value allows you to:

• Classify traffic: The classification process selects the traffic to be marked. Classification accomplishes this by partitioning traffic into multiple priority levels, or classes of service. Traffic classification is the primary component of class-based QoS provisioning.

• Police and mark traffic: Policing causes traffic that exceeds the configured rate to be discarded or marked to a different drop level. Marking traffic is a way to identify packet flows to differentiate them. Packet marking allows you to partition your network into multiple priority levels or classes of service.