It appears we have hit an issue with our 3850s running an old version of code, the fed process seems to be maxing out the CPU.
Can anyone tell me if this will have any impact when forwarding traffic?
As forwarding is done in hardware I would expect not, however 100% cpu must me having an impact somewhere?
what is the best fix, IOS upgrade ?
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If this switch is in production, it is critical to your environment and the CPU is100%, all the time, you need to fix it right away as it will crash sooner than later. As Mark said, 3.6.6 is pretty good. With 3.6.6 the CPU will be ok, but the memory still at 40% on a simple layer-2 box which is not good. Oh, well 40 is better than 80 or 90. In general, Cisco 3850s run high on CPU or memory or both.
Exactly what "old" version?