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Logical routers provide the flexibility that carriers require to consolidate and tune the operation of their networks to accommodate different services without deploying additional physical routers. Logical routers allow service providers to partition a single physical router into multiple logical routers, where each logical router performs independent routing tasks. This lets providers manage their CAPEX by consolidating the network hierarchy onto a single highly available router or by scaling service offerings in mid to large POPs with multi-chassis routers. Additionally, logical routers can reduce OPEX by supporting better asset allocation, streamlining growth management at the edges of the network, and reducing the complexity of the physical network topology. Finally, logical routers support a variety of revenue generating services such as Application Specific Routing (ASR), wholesale router services, and proof of concept service deployments.
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