VPNs: IPsec & DMVPN · Chapter 01 of 02

IPsec VPNs: IKE, ESP and the Two Phases

IPsec secures IP traffic with authentication and encryption negotiated in two phases: IKE first authenticates the peers and builds a protected control channel (the IKE SA), then negotiates the IPsec SAs — unidirectional agreements on algorithms and keys — under which ESP encrypts and authenticates the data. Tunnel mode wraps entire packets for site-to-site VPNs; IKEv2 with AES-GCM and strong DH groups is the modern baseline.

Updated 31 August 2026 · RST Forum faculty

In this guideShow

IPsec is not a protocol but a framework of them, standardised so that two devices from different vendors can build a cryptographically protected path across a hostile network. Grasp its architecture — who negotiates, what a security association is, where the encryption actually happens — and every vendor's VPN configuration becomes the same five decisions wearing different syntax.

The vocabulary

  • Security Association (SA) — a one-way contract: 'traffic in this direction uses these algorithms with these keys, identified by this SPI'. Every IPsec tunnel is at least a pair of SAs, one per direction, with lifetimes after which they re-key.
  • IKE (Internet Key Exchange, UDP 500) — the negotiator: authenticates the peers, performs Diffie–Hellman, and derives all keys. IKEv2 (RFC 7296) is the current, cleaner protocol — fewer messages, built-in NAT traversal and keepalives, EAP support; IKEv1's main-mode/aggressive-mode machinery survives only in legacy configs.
  • ESP (IP protocol 50) — carries the protected data: encryption plus integrity, today usually combined in AES-GCM. AH (protocol 51) offers integrity without encryption and is effectively historical.
  • NAT-T — ESP has no ports, so NAT breaks it; NAT traversal detects this during IKE and re-wraps ESP in UDP 4500.

The two phases

Phase 1: the peers authenticate each other — pre-shared key or certificates — run Diffie–Hellman, and establish the IKE SA: an encrypted control channel for everything that follows. Phase 2 (IKEv2 calls the exchange CREATE_CHILD_SA): under that protection, they negotiate the IPsec SAs — proposal (say, ESP with AES-256-GCM), the traffic each SA covers, optional fresh DH for perfect forward secrecy — and install them into hardware. Data then flows under ESP with no further IKE involvement until lifetime or dead-peer-detection events. The phases fail differently, which is the diagnostic gift: no IKE SA means reachability, UDP 500/4500, or authentication (mismatched PSK); an IKE SA without IPsec SAs means proposal or traffic-selector mismatch; SAs up with encrypt counters rising and decrypt at zero means one-way transport — usually the return path or NAT.

R1# show crypto ikev2 sa
Tunnel-id Local Remote Status
1 203.0.113.1/500 198.51.100.9/500 READY
R1# show crypto ipsec sa | include pkts|spi
#pkts encaps: 84213, #pkts decaps: 83907
current outbound spi: 0x4A3B1C22

Tunnel mode, transport mode, and the modern shape

Tunnel mode encrypts the entire original packet and adds a new IP header between the VPN gateways — the site-to-site default, hiding internal addressing completely. Transport mode protects only the payload, keeping the original header — meaningful mainly for host-to-host traffic and as the wrapper under GRE. That last case defines modern Cisco practice: rather than classic crypto maps matching interesting-traffic ACLs, current designs build a routed tunnel (GRE or VTI) and apply an IPsec profile to it — the tunnel interface carries routing protocols, multicast and anything else IP, while IPsec protects the tunnel wholesale. Routing over VPNs instead of ACL-matched crypto is half of what makes the next chapter's DMVPN possible.

crypto ikev2 profile SITE
match identity remote address 198.51.100.9
authentication local pre-share key R5tF0rum!
authentication remote pre-share key R5tF0rum!
crypto ipsec profile PROT
set ikev2-profile SITE
interface tunnel1
tunnel destination 198.51.100.9
tunnel protection ipsec profile PROT

Baseline choices for anything built today: IKEv2, AES-GCM, DH group 19 or higher, certificates over PSKs where scale permits, PFS on, and MTU respected — ESP adds bytes, and an unclamped TCP MSS through a tunnel is the most reliably recurring VPN ticket in existence.

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