SD-WAN GRE Tunnels and Layer 2 Connectivity

Purpose

This note describes the use of GRE tunnels in Huawei SD-WAN, their two primary use cases (connecting non-SD-WAN sites and IPv6 migration over IPv4 overlay), and the relevant constraints and configuration parameters.

GRE in the SD-WAN Context

GRE (Generic Routing Encapsulation) is not the primary tunnel protocol for site-to-site overlay in SD-WAN (that role belongs to EVPN/IPsec). Instead, it is used for specific supplementary scenarios:

Use Case Description
Non-SD-WAN site connectivity GRE tunnel from CPE to a legacy or third-party endpoint
IPv6 GRE over IPv4 overlay Transport IPv6 traffic over an existing IPv4 underlay
Cloud security gateway GRE tunnel to Zscaler/ForcePoint (covered in a separate note)

In iMaster NCE-Campus, the configuration is found at: Network Configuration > SD-WAN > Physical Network > Tunnel Configuration > Interconnection with Non-SD-WAN Sites > GRE

GRE Tunnel Types

Underlay GRE Tunnel

  • Tunnel is built on the physical network
  • Source IP is typically the IPv4 address of the WAN interface of the CPE
  • Destination IP is the address of the remote endpoint (e.g., legacy router or third-party gateway)
  • No VN context required
  • Use case: direct L3 connection to non-SD-WAN systems

Overlay GRE Tunnel

  • Tunnel is built within a VN instance (VRF)
  • Prerequisite: a Loopback Interface must be configured in advance as the source interface
  • Source IP: IP address of the loopback interface in the overlay
  • Destination IP: IP address of the loopback interface at the remote endpoint
  • Use case: transport IPv6 traffic over IPv4 overlay infrastructure

IPv6 GRE over IPv4 Overlay

This scenario is relevant for enterprises migrating their LAN infrastructure to IPv6 while still operating an IPv4-based SD-WAN underlay.

Networking Diagram

Procedure:

  1. Create overlay topology and VN with IPv6 support enabled
  2. Configure an IPv6 pool in the controller (Network Configuration > SD-WAN > Global Configuration > Virtual Network)
  3. Define overlay loopback interfaces as tunnel source and destination interfaces
  4. Configure overlay GRE tunnels (type: IPv6)
  5. Define LAN-side static routes that steer IPv6 traffic into the GRE tunnel

Prerequisite:

  • All involved devices must support V300 (or V600)
  • IPv6 pool must be configured in the controller

Important note for V600: When an IPv6 GRE tunnel is configured over an IPv6-disabled WAN link, the controller automatically delivers the IPv6 family configuration to the VPN. When the GRE tunnel is deleted, the IPv6 family configuration is not automatically removed from the device — manual cleanup is required.

GRE Configuration Parameters

Parameter Description
Device CPE on which the GRE tunnel is configured
Server network Underlay or Overlay
VN Instance Overlay only: VN in which the tunnel is deployed
Interface Name of the GRE tunnel interface (e.g., Tunnel1)
Interface IP Address Type IPv4 or IPv6
Interface IPv4/IPv6 address IP address of the tunnel interface (same subnet as the peer)
Samuel Heinrich
Senior Network Engineer at Selution AG (Switzerland)
Arbeitet in Raum Basel (Switzerland) als Senior Network Engineer mit über 15 Jahren Erfahrung im Bereich Netzwerk

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