IPsec is often deployed in a hub-and-spoke architecture. Each leaf node has an IP range that is part of a larger range. Leaves communicate with each other via the hub. This is called subnet extrusion. In the example below, we configure the head office with 10.0.0.0/8 and two branches that use a smaller /24 subnet.
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At the “branch1” office, we use the same connection. Additionally, we use a pass-through connection to exclude our local LAN traffic from being sent through the tunnel: