Nile's layer 3 only network: Transcending VLANS

Introduction

Since the introduction of VLANs (802.1q), networks have become increasingly complex. Cloud adoption, IoT proliferation, and heightened security threats have exposed the limitations of the traditional Layer 2 approach, driving the need for more robust access controls and secure network architectures.

VLANs were primarily invented to mitigate broadcast storms, but their use for security-driven network segmentation was a later development. However, broadcast domain limitations, complex management overhead, and insufficient security boundaries hindered scalability, agility, and the ability to enforce granular access controls. Using VLANs for segmentation also left networks vulnerable to attacks within shared broadcast domains and introduced complexity in managing segmentation across multiple devices and vendors.

This document explores how dynamic, policy-driven Layer 3 segments, a foundational innovation of the Nile Access Service (NaaS), addresses these challenges. Nile's approach, grounded in zero-trust principles and microsegmentation, enables organizations to build secure, dynamic, and future-proof networks aligned with modern security best practices and scalability requirements.

Shiv> One key concept we are trying to drive towards is zero trust should not be based on IP's. VLANs were invented to limit broadcast storms and hence limit number of devices in a VLAN. They got misused as a security tool where people started using it for segmentation. So we should differentiate between segments and segmentation ideally. In our world devices on the same subnet a.k.a are also segmented. We did segments so we can fit in the current model of VLANs as customers think that way. But with our new micro-segmentation (phase 1 will be out soon) our north star is one large subnet and all users and devices in that subnet. We will do segmentation based on Users, devices and apps as opposed to IP's. Customers may not adopt this but that is what we will recommend.

Everything i mentioned above will be part of the zero trust page but I wanted to point it out here so that we don't present segments as segmentation e.g. I would say "What is a Layer 3 only network?" as opposed to What is Layer 3 Segmentation?". We can chat if you prefer.

What is Layer 3 Segmentation?

Why a Layer 3 only network?

Nile's Layer 3 Network Architecture represents a significant advancement in network design, addressing the limitations of traditional VLAN-based segmentation. By operating entirely at the network layer (Layer 3) of the OSI model, Nile's architecture leverages technologies like network virtualization, overlay networks, and routing protocols to create secure, isolated network segments that span multiple physical locations.

Nile's Layer 3 segments are logical constructs that define network access and security policies based on user identities, device attributes, and application requirements, rather than relying on IP addresses or physical network boundaries. Hybrid cloud technologies, dedicated Nile Access Service hardware, and OSPF routing create logical segments that can span across multiple physical networks and locations. While these logical segments span physical locations, each location maintains unique IP subnets. Layer 3 segmentation also solves the inherent complexity of managing and securing traditional VLANs, as segments are created in the Nile Customer Portal and applied to devices and users wherever they connect.

RL > Segments span across locations but each location doesn't need to have a "unique" subnet. For example: we can use the same subnet for the "employee" segment across all the 10 locations.

At the core of Nile's approach is the principle of zero trust, which assumes that no user, device, or application should be implicitly trusted. Instead, granular access controls and continuous authentication and authorization are enforced through a combination of network segmentation, security policies, and identity-based access management.

Key features and benefits of Nile's Layer 3 Network Architecture include:

Granular Segmentation: Nile's architecture allows for the creation of fine-grained segments based on various criteria, such as user roles, device types, or application requirements. This level of granularity enables precise access controls and reduces the attack surface.
Centralized Policy Management: Network access policies and security controls are managed centrally through Nile's intuitive management interface. This simplifies the configuration and enforcement of consistent policies across multiple locations and eliminates the complexity associated with traditional VLAN configurations.
Scalability and Flexibility: Nile's architecture can easily scale to accommodate a large number of segments and can adapt to changing business requirements. New segments can be created, modified, or removed without the need for extensive network reconfiguration or hardware changes.
Enhanced Security: By enforcing zero trust principles and micro segmentation, Nile's architecture significantly enhances network security. By default, each segment, device and user is isolated from all others, mitigating the spread of threats and reducing the attack surface.
Campus Zero Trust by default: Unknown devices accessing the network are isolated by default, mitigating any threat of malware entering the domain.
Seamless Integration: Nile's Layer 3 Network Architecture seamlessly integrates with existing network infrastructure and security solutions. It leverages standard routing protocols like OSPF to enable efficient communication between segments and can integrate with leading security appliances and cloud platforms.

Layer 3 segmentation in the Nile Service Block operates at the network layer by leveraging OSPF to facilitate communication between segments. Each segment functions as a separate logical network, with upstream security appliances or routers handling inter-segment traffic. The Nile Access Service integrates closely with security vendors like Palo Alto, Fortinet and zScaler, ensuring policies are consistently applied to all traffic.

Nile's Layer 3 Network Architecture represents a significant step forward in network design, providing organizations with a scalable, flexible, and secure foundation for building modern, zero-trust networks. By eliminating the complexities associated with traditional VLAN-based segmentation and enabling granular access controls, Nile empowers organizations to protect their critical assets, streamline network management, and adapt to the ever-evolving demands of the digital landscape as we enter this period of AI powered innovation.

Layer 3 segmentation in the Nile Access Service is an approach to logically dividing a network into secure, isolated segments at the network layer (Layer 3) of the OSI model. It leverages hybrid cloud technologies, dedicated Nile Access Service hardware, and OSPF routing to create logical subnets that can span across multiple physical networks and locations Shiv> If i understand your statement correctly are you saying a subnet spans locations? If so, that is not correct. The segment name like Employee can span locations but for each location there is usually a unique subnet unless they plan to use NAT at every site and use the same subnet. Layer 3 segmentation also solves the inherent complexity of managing and securing traditional VLANs, as segments are created in the Nile Customer Portal and applied to devices and users wherever they connect.

Unlike traditional VLANs, which operate at the data link layer (Layer 2) and are confined to broadcast domains, Layer 3 segmentation transcends these limitations by separating the logical network topology from the underlying physical infrastructure. This separation enables greater flexibility, scalability, and enhanced security compared to VLAN-based segmentation methods.

~~Key advantages of Nile's Layer 3 segmentation include:~~

Scalability: Layer 3 segmentation can accommodate a large number of logical segments without the limitations of broadcast domains or VLAN ID exhaustion, making it suitable for large-scale deployments, multiple geographic locations, or a hybrid.
Security: By default, each segment, device and user is isolated from all others, mitigating the spread of threats and reducing the attack surface. For instance, unkown devices accessing the network are isolated by default, mitigating any threat of malware entering the domain. Layer 3 segmentation is fundamental to Nile's Zero Trust Campus.
Flexibility: Logical segments can be created, modified, or removed dynamically, independent of the underlying physical network infrastructure, enabling agile and responsive network management.
Centralized Management: Layer 3 segmentation by Nile delivers centralized management and policy enforcement, simplifying the configuration and administration of network segmentation across distributed environments.
Location Independence: Network access and connectivity are no longer tied to physical locations or switch ports. Instead, users and devices can be assigned to logical segments based on policies, identities, or application requirements, enabling secure access from anywhere. For example; a college faculty member will often connect their laptop via Ethernet and Wi-Fi at multiple locations across the campus. Regardless of port o used or location, they will be automatically placed in their faculty segment. If a student plugged into that same port vacated by the faculty member, they would automatically join the student segment.

Layer 3 segmentation in the Nile Service Block operates at the network layer by leveraging OSPF to facilitate communication between segments. Each segment functions as a separate logical subnet or virtual network, with upstream security appliances or routers handling inter-segment traffic. The Nile Access Service integrates closely with security vendors like Palo Alto, Fortinet and zScaler, ensuring policies are consistently applied to all traffic.

This approach enables organizations to implement granular access controls, microsegmentation, and continuous authentication and authorization, aligning with our principles of the zero-trust campus and enhancing overall network security posture.

Layer 2 vs Layer 3

Characteristic	VLAN (Layer 2)	Nile's Layer 3 Architecture
Scope of Segmentation	Confined to the broadcast domain	Creates logical segments isolated at the network layer
Role of Routing	Requires external routers for inter-VLAN communication	Inherently leverages routing for inter-segment traffic
Configuration Complexity	Configuration maintenance and control across multiple devices and vendors is highly complex and prone to human error.	Centralized management and simplified configuration through the Nile Customer Portal
Security Approach	Limited isolation within shared broadcast domains and susceptible to physical port vulnerabilities	Zero trust principles with granular access controls and default isolation between segments, users, and devices
Redundant Connectivity	Implementing redundant links is cumbersome	OSPF routing enables optimized path selection and redundancy
Broadcast Domain Issues	Prone to broadcast storms and performance degradation in large networks	Significantly reduces broadcast traffic, enhancing performance
Connectivity Approach	Often tied to physical location or switch port	Policy-based connectivity based on user identity, device attributes, and application requirements

The comparison between traditional VLANs and Nile's Layer 3 Network Architecture highlights the significant advancements and benefits of Nile's approach in terms of segmentation, management simplicity, security, performance, and connectivity. These advantages position Nile's Layer 3 Network Architecture as a powerful enabler of zero-trust security models and a foundation for building modern, agile, and secure networks.

Nile Layer 3 Architecture: Customer Use Cases

Now that we've covered the theory, how are Nile Access Service customers benefiting from our Layer 3 only approach today?

Healthcare

One of our customers in the healthcare industry faced a critical security challenge when the manufacturer of their 50 x-ray imaging machines suddenly announced the discontinuation of security and OS updates. The customer was advised to replace all the machines, many of which were not fully depreciated, leading to a financial impact of several million dollars.

With Nile's Layer 3 segmentation, the customer was able to swiftly create firewall rules to isolate the vulnerable x-ray machines from the rest of their network. Through the Nile Customer Portal, they centrally configured and deployed the segmentation policies across all affected sites, without the need for physical reconfiguration or on-site visits.

By leveraging Nile's architecture, the customer avoided the premature replacement of the x-ray machines, saving them millions in replacement costs and lost productivity. Moreover, the segmentation approach ensured the customer maintained compliance with HIPAA regulations and protected sensitive patient data, despite the vulnerabilities in the x-ray machines.