"Folks, in simple words, can I see VRF as a 'partition' in which multiple customers routing table can be handled separately? It is like creating multiple VPN's for various clients connecting to my service. Is that how you see it?"
Yes, that is a good way to look at it. It is especially useful to service providers who offer IP VPN services to multiple customers, who use the same service provider PE edge router. Wouldnt it suck for the SP to have to buy a new router to support each customer VPN.
It also allows the SP to carry network traffic for customers who use overlapping IP address ranges, which so common. Isolated VRF instances are created for each VPN, and the routes you see are specific to that VPN and have only local significance.
HTH
Victor
