Layer 3 switches combine the speed and cost-effectiveness of switching, with the control and scalability of routing. Like a router, a Layer 3 switch runs routing protocols such RIP, RIP2, OSPF or any other routing protocol. The Layer 3 switch communicates with all other "routers" in the network. From a router's perspective, it appears as if the Layer 3 switch is just another router exchanging information about topology and moving packets.
Unlike traditional routers a Layer 3 switch applies switching technologies in the forwarding plane. The main CPU does not inspect packets unless they are exceptions
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