About Virtual Routers and Virtual Routing and Forwarding (VRF)
You can create multiple virtual routers to maintain separate routing tables for groups of interfaces. Because each virtual router has its own routing table, you can provide clean separation in the traffic flowing through the device.
Thus, you can provide support to two or more distinct customers over a common set of networking equipment. You can also use virtual routers to provide more separation for elements of your own network, for example, by isolating a development network from your general purpose corporate network.
Virtual routers implement the “light” version of Virtual Routing and Forwarding, or VRF-Lite, which does not support Multiprotocol Extensions for BGP (MBGP).
When you create a virtual router, you assign interfaces to the router. You can assign a given interface to one, and only one, virtual router. You would then define static routes, and configure routing protocols such as OSPF or BGP, for each virtual router. You would also configure separate routing processes over your entire network, so that routing tables on all participating devices are using the same per-virtual-router routing process and tables. Using virtual routers, you create logically-separated networks over the same physical network to ensure the privacy of the traffic that runs through each virtual router.
Because the routing tables are separate, you can use the same, or overlapping, address spaces across the virtual routers. For example, you could use the 192.168.1.0/24 address space for two separate virtual routers, supported by two separate physical interfaces.
Note that there are separate management and data routing tables per virtual router. For example, if you assign a management-only interface to a virtual router, then the routing table for that interface is separate from the data interfaces assigned to the virtual router.