Hello @knaik99,
You are correct in your understanding of VRF Lite !
-- VRF Lite is a feature that allows a router to support multiple independent routing tables without the need for MPLS.
In VRF Lite, each VRF instance operates as a separate and isolated routing table, effectively creating virtual routers within the physical router. VRF Lite is often used in scenarios where a single physical router needs to handle traffic for multiple customers, departments, or VPNs, but without the complexity of MPLS.
In VRF Lite, the router does not have a global MPLS configuration, and there is no need to configure RD or RT for the VRFs. Each VRF instance is locally significant to the router and is only used for local segmentation of traffic.
-- MPLS VRF is part of MPLS technology and is used to create separate, independent routing tables that allow for the segmentation of traffic in a service provider network or large enterprise network. MPLS VRF uses labels to forward traffic between VRF instances, making it highly scalable and efficient for traffic separation.
In MPLS VRF, the router needs to have MPLS enabled globally. This is typically done using the "mpls ip" or "mpls label protocol ldp" command, depending on the MPLS label distribution method. Each VRF instance in MPLS VRF has a unique RD and a set of RT to control the importing and exporting of VPN routes.
As you mentioned, the basic use of VRF Lite is to create multiple isolated routing tables on a single physical router. VRF Lite is commonly used to achieve network segmentation for different purposes, such as separating traffic for multiple customers, departments, or applications, without the need for MPLS.
Best regards
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