Course contents

Unit 3: Underlay, overlay and TLOCLesson 3.2 (2 of 7 in this unit)15 of 27 in the Cisco SD-WAN course

Logical overlay and encrypted tunnel construction

BR-01 reaches the Controller, yet users still cannot reach HUB-01. The routing conversation and the user-data tunnel are different paths. Check each before deciding which part failed.

Intermediate · 11 min read

You'll learn to describe the order in which a WAN Edge builds its control connections, learns routes and TLOCs, and forms encrypted tunnels, and say which of those steps involve the controllers and which do not.

Technical definition

SD-WAN overlay is the logical network built on top of the transport links. It has two parts that work differently: a control plane, where each WAN Edge keeps secure connections to the controllers and exchanges routes with OMP, and a data plane, where WAN Edges send user traffic to each other in encrypted tunnels.

Two conversations on the same links

When BR-01 joins the fabric it starts two separate conversations over the same WAN links. One is with the controllers: BR-01 proves who it is, then receives routes and policy. The other is with other WAN Edges, such as HUB-01: BR-01 sends user traffic to them in encrypted tunnels. The controllers are only in the first conversation. Keeping them apart is what lets one central control system manage hundreds of sites without carrying their traffic.

Control and data
Control and dataThe control plane carries routing and policy. The data plane carries user traffic.ControlDTLS or TLSto controllersDataIPsecbetween edgesand

On small screens, swipe sideways or focus the diagram and use the arrow keys.

They use different connections.
Controller information and site traffic take different logical paths
Controller information and site traffic take different logical pathsBR-01 and HUB-01 each have a dashed blue DTLS or TLS control connection to the SD-WAN Controller. OMP uses those connections. A separate green IPsec data tunnel joins the two WAN Edges, carrying user packets and BFD. The Controller is not on the user packet forwarding path. All these logical paths depend on underlay routing.SD-WAN Controller · 10.255.0.11DTLS/TLS + OMPDTLS/TLS + OMPIPsec · user traffic + BFDBR-01System IP 10.255.2.1HUB-01System IP 10.255.1.1

On small screens, swipe sideways or focus the diagram and use the arrow keys.

Logical paths, not extra cables. This example permits a direct BR-01 to HUB-01 tunnel; policy, TLOC eligibility and transport reachability determine which tunnels can form.

The dashed blue paths carry control information to the Controller. The green path carries user packets between BR-01 and HUB-01, with BFD (Bidirectional Forwarding Detection) monitoring that tunnel. The diagram uses system IPs as device identities, not as WAN interface addresses. Manager and Validator connections are omitted here so the two paths remain clear.

The build order

  1. Transport comes up. The WAN Edge has an address and a route on each transport, as in the transport-side lesson. Without it, nothing below can start.
  2. Discovery through the Validator. The WAN Edge contacts the Validator (formerly vBond) first. The Validator authenticates it, tells it which Controller and Manager to use, and helps it discover its public address if NAT is present. This discovery connection is normally torn down after the required Controller and Manager connections form; some scenarios retain it.
  3. Control connections. The WAN Edge opens its own secure connection to the Controller (formerly vSmart) and to the Manager (formerly vManage), using the certificates covered in later lessons. These run over DTLS or TLS; check your release for which is used and its ports.
  4. OMP session. Over the Controller connection, the WAN Edge starts OMP (Overlay Management Protocol). It advertises its prefixes, its TLOCs and the keys other sites need, and receives the information permitted by control policy. It does not necessarily receive every site’s prefixes or TLOCs.
  5. Tunnels between TLOCs. A TLOC (transport locator) identifies an endpoint by system IP, colour and encapsulation. An eligible remote TLOC, usable transport address/port, reachability and policy allow this example’s direct IPsec tunnel to form. Learning a TLOC alone does not guarantee a tunnel.
  6. BFD inside each tunnel. When BFD comes up, the tunnel can carry traffic and the routes that depend on it are usable.

Steps 2 to 4 are the control plane. Steps 5 and 6 are the data plane. The fabric depends on all of them, but a fault in one produces different symptoms from a fault in another, which is why they are worth keeping separate.

Build order
Build orderControl connection first, then OMP, then tunnels.Control connectionOMProutes and TLOCsTunnelsIPsecBFDtunnel health

On small screens, swipe sideways or focus the diagram and use the arrow keys.

Data tunnels depend on the control plane.

What each protocol is responsible for

What each protocol is responsible for
What each protocol is responsible forPiece; Between; Job. Control connection (DTLS or TLS): WAN Edge and each controller Secure control channel; OMP uses the Controller connection, not the user-data tunnel OMP: WAN Edge and Controller Carries prefixes, TLOCs and policy; the overlay's routing protocol IPsec tunnel: WAN Edge and WAN Edge Encrypted forwarding of user traffic between TLOCs BFD: Inside each IPsec tunnel Detects a dead tunnel and measures its qualityPieceBetweenJobControl connection(DTLS or TLS)WAN Edge and each controllerSecure control channel; OMP uses theController connection, not theuser-data tunnelOMPWAN Edge and ControllerCarries prefixes, TLOCs and policy;the overlay's routing protocolIPsec tunnelWAN Edge and WAN EdgeEncrypted forwarding of user trafficbetween TLOCsBFDInside each IPsec tunnelDetects a dead tunnel and measuresits quality

On small screens, swipe sideways or focus the diagram and use the arrow keys.

Read each row across: the left box names the item, the others describe it.

The key point for troubleshooting: OMP being up does not prove that a particular data tunnel is usable, and a tunnel being up does not mean the right routes are present. Each layer has its own show command.

Protocols and jobs
Protocols and jobsEach protocol has one job.DTLS or TLSSecures control connectionsOMPCarries routes, TLOCs and policyIPsecEncrypts user trafficBFDMeasures tunnel health

On small screens, swipe sideways or focus the diagram and use the arrow keys.

Know which to check.

How the data plane stays encrypted

The tunnels use IPsec. Rather than each pair of routers negotiating keys with each other, the usual model in the documentation is that each WAN Edge generates its keys and advertises them through OMP, so the encryption material arrives with the control information the router already receives. Which ciphers, authentication options and rekey intervals apply depends on your release and configuration, so check them in the configuration guide instead of assuming them.

Encrypted data plane
Encrypted data planeEdges agree on keys and encrypt packets between them.KeysnegotiatedEncryptuser packetTunnelover the transportDecryptat the far edge

On small screens, swipe sideways or focus the diagram and use the arrow keys.

The keys are not sent in the clear.

Tunnels are also usually created to every TLOC the router is allowed to reach, not only when traffic appears, which is why BFD can measure them continuously. Designs that build some tunnels only on demand exist and belong to a later lesson.

Reading the overlay from the router

Example output
BR-01#show sdwan control connections
PEER    PEER      PEER         SITE  DOMAIN  PEER PRIV      STATE
TYPE    PROTOCOL  SYSTEM IP    ID    ID      IP
vsmart  dtls      10.255.0.11  1     1       198.51.100.31  up
vmanage dtls      10.255.0.10  1     0       198.51.100.30  up
BR-01 has a control connection to the Controller (shown as vsmart) and to the Manager (vmanage), identified by their system IPs. This snapshot omits a Validator row after discovery. Some deployments retain that connection, including when required Controller connections have not all formed. A missing or non-up connection to this Controller prevents normal OMP exchange with that peer. Check other Controller peers and release-specific graceful-restart retention before concluding that every learned route has vanished.
Example output
BR-01#show sdwan omp peers
PEER         TYPE    DOMAIN ID  OVERLAY ID  SITE ID  STATE
10.255.0.11  vsmart  1          1           1        up
One OMP peer, the Controller, in the up state. BR-01 does not peer with HUB-01 over OMP; it learns HUB-01's routes and TLOCs from the Controller.
Example output
BR-01#show sdwan bfd sessions
SYSTEM IP    SITE  STATE  SOURCE COLOR  REMOTE COLOR  ENCAP
10.255.1.1   10    up     biz-internet  biz-internet  ipsec
10.255.1.2   20    up     biz-internet  biz-internet  ipsec
These are the data-plane tunnels, for the two eligible TLOC pairs in this example, to HUB-01 (site 10) and HUB-02 (site 20). They are separate from the control connections above: a router can have all of these and still have no route to a prefix that nobody advertised.

Learn more: OMP Peers and ExchangesTLOC Components and Transport ReachabilityApplication-Aware Routing

Which layer to blame

Which layer to blame
Which layer to blameMatch the symptom to the layer.No pathUnderlay or firewallNo control connectionCertificate, name or reachabilityNo routesOMP or policyNo tunnelTLOC, colour or BFD

On small screens, swipe sideways or focus the diagram and use the arrow keys.

Start from the bottom.
Which layer to blame
Which layer to blameSymptom; Layer; First command. Router not visible in the Manager: Control connections show sdwan control connections Controller connection up, no remote prefixes: OMP or policy show sdwan omp peers Prefixes present, no tunnel to a site: Data plane show sdwan bfd sessions Tunnels flapping: Underlay quality, MTU or NAT Transport-side checksSymptomLayerFirst commandRouter not visible inthe ManagerControl connectionsshow sdwan control connectionsController connectionup, no remote prefixesOMP or policyshow sdwan omp peersPrefixes present, notunnel to a siteData planeshow sdwan bfd sessionsTunnels flappingUnderlay quality, MTU or NATTransport-side checks

On small screens, swipe sideways or focus the diagram and use the arrow keys.

Read each row across: the left box names the item, the others describe it.

Verify one failure and its recovery

Use an isolated, already onboarded lab with a permitted BR-01 to HUB-01 tunnel. Record control connections, OMP peer state, the expected service prefix and its BFD session. On IOS XE Catalyst SD-WAN 17.x, show sdwan omp routes checks advertised overlay routes; show ip route vrf 10 checks the installed service route when this lab’s service VPN is 10. Inspect the next hop and policy as well as whether a row exists.

If the Controller remains up while HUB-01’s BFD session goes down, compare the two WAN Edge transport endpoints, TLOC eligibility, NAT/firewall handling and IPsec state. Restore only the known lab fault, verify BFD returns, then check the service route and a permitted user flow in both directions. An absent session can also mean no eligible remote TLOC was learned, so do not assume the control policy is correct from connection state alone.

Control up, BFD up and the correct installed service route are separate pieces of evidence. Even all three need an end-to-end application test and return path. Do not bring down a shared production controller for this exercise.

Technical references: Cisco’s design guide and IOS XE 17.x BFD and high-availability guide. Syntax and retention depend on release; examples are authored, not device captures.

Mistakes when learning the overlay

  • Believing that traffic is routed through the Controller. It distributes information only.
  • Assuming every Validator connection must disappear immediately. Discovery is its main role, but connection retention depends on the control topology and configuration; it does not carry user traffic.
  • Expecting a full mesh of OMP sessions between branches. OMP peers with the Controller, and tunnels between sites are a different mechanism.

Test yourself on the overlay

Predict · scenario 1

HUB-01 and BR-01 exchange user traffic. Which path does that traffic take?

Predict · scenario 2

show sdwan control connections on BR-01 shows the Controller up, but show sdwan bfd sessions is empty. Which layer has the problem?

Predict · scenario 3

What does BFD inside a tunnel give the fabric?

FAQ

Does user traffic pass through the Controller?
No. The Controller (formerly vSmart) distributes routes, TLOCs and policy. User packets travel in IPsec tunnels directly between WAN Edges. This keeps the controllers out of the forwarding path, so a controller outage affects new changes and route updates rather than packets already flowing, within the limits of what your release does when control is lost.
Is the overlay one tunnel per site?
No. Tunnels are built between pairs of TLOCs, so a site with two transports can have several tunnels to the same remote site. Which ones form depends on colours, restrict and policy, as the TLOC lesson explains.
What does BFD do in the overlay?
BFD (Bidirectional Forwarding Detection) runs inside each tunnel as a keepalive and also measures loss, latency and jitter. A tunnel whose BFD session is down is not used for forwarding, and the measurements feed application-aware routing.