2/ If the WAN link has been rate limited between A and B to be 100M but the interfaces connecting these two end points are GigE, do I have to use hierarchical QoS policy with shaping on the egress to enforce my QoS policy because the hardware queue on a GigE card will never be exhausted.
A (ISP1 GigE) ---> (ISP2 Rate Limit 100M) ---> B (ISP1 GigE)
3/ What happens to packets that exceed the policing rate which I've elected to have remarked. Do these packets get remark and then buffered?
NB: Very similar to Collin's response. Guess Collin must be correct. ;)
#1 Correct. (NB: can often be adjust using interface tx-ring-limit. Reducing might be necessary when working with something like VoIP.)
#2 "Have to", no, but shaping, I think, for such would be better. (The downstream 100 Mbps policer should [not precisely] emulate a 100 Mbps link.) Also for shaping, you don't need hiearchical QoS, GTS might be used or shaping within non-hiearchical CBWFQ. (NB: Even better, if possible [e.g. copper], would be to run your gig connections at 100 Mbps. Shapers and actual port interfaces, at the same nomimal bandwidth, don't meter traffic exactly the same way. Also, there are sometimes limitations when using hiearchical QoS.)
#3 Can't say. All your question note is packets have been remarked, what happens because of that is - "it depends".
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