Peer groups allow a simpler configuration when you have more than just a
few neighbors with similar outgoing routing policies.  It also saves
processor resources within the router because it will form updates more
efficiently.  For each peer group, the router only needs to construct a
single update and then replicate that for each peer-group peer instead
of constructing individual updates for each peer.

A confederation is an entirely different animal, altogether.  In BGP,
your internal peers must be fully meshed.  This creates some serious
scalability issues as the number of internal peers grows.  One way to
help alleviate this problem is to create virtual autonomous systems
within your real autonomous system.  Within each sub-AS the peers must
still be fully meshed, but no similar requirement exists for connections
to other sub-AS peers.

Route reflectors are another method of alleviating this same problem. 
With RRs, BGP relaxes the rules regarding the forwarding of routes by
iBGP peers.  Normally, an iBGP peer will not forward routes to another
iBGP, hence the need for a full mesh of iBGP peers.  With RRs, you can
select certain peers that _are_ allowed to forward routes to other
peers, reducing the need for a full mesh.

HTH,
John

>>> "Eric Waguespack"  3/18/02 2:16:42 AM >>>
what is the difference between a bgp confederation and
a bgp peer-group?

are they both, in addition to route reflectors, all
simply used to avoid having to do a full mesh?

thanks

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