Folks, to my understanding VPLS is L2 VPN artchitecture. I thought that the idea here is that by using VPLS customers can gain connectivity to other sites using a layer 2 switch as the CPE(Customer Premise Equipment).
If that is the case, why this slide explaining VPLS shows the CPE devices as routers as well? Does it make sense? If have a router as a CPE shouldn't I be looking into L3 VPN technologies?
VPLS is not limted to swicthes as CPEs, you can have Routers as well.
All the routers will be part of the same broadcast domain, as if they were in a LAN.
The SP cloud seems like a Layer 2 switch to the customer.
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