Yes your 3750 does support VPLS. but there are two things to it.
1) First is making a feature work.
2) Second is to making it scale as per the current & future requirements.
So if your requirement of L2 services is to only handful of customer, without any real SLA's about redundancy then you can surely consider 3750 for such a service.
Rest all seems fine with the IDEA. expect for the scaling and redundancy. So if these two things are not a major problem then you may try to offer such a service using 3750 in the beggining and then later on as per the business demand and scale you can scale up your devices as well.
Thanks for the comment. Yes this design will have scaling issue (solution is H-VPLS right?). Redundancy also will be issue. As i said, we have limited sources. I think this is the best way it can be done for now.
Just to make this clear, so this 3750Me can do PW to all other 3750Me so it can be like point to multipoint? Is my understanding correct? All L2 customer just feel they are in same LAN. (Just like VPN)?
3750 supports VPLS, yes but purely as an extension of the E-LAN service downwards into the Metro-Access cloud. And the same is termed as H-VPLS. It is ntohing more than assigning a SP vlan to a trunl/access port of a customer, carrying that VLAN within your Metro-Ring, which is purely L2 and if the same customer has multiple connection on the same ring then all connection would be put in the same VLAN. hence giving a E-LAN service (Multipoint) now the same vlan is extended to you NPE and transported using VFI(VPLS). So you see why its called H-VPLS. You have two levels of Multipoint service. First level is provided on layer 2 withing Metro E Access rings, second level is provided by VPLS VFI across Metro-E islands.
Now if you want to configure your 3750 as PE device at maximum you can only do P2P EoMPLS and VRF's.
Also you cannot make P2M for the same VLAN or interface. As only P2P config is supported.
If you can explain what is the service requirement then we can think. how many customers currently need M2M service, how many P2P etc.
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