Open System Interconnection

Hierarchical models enable you to design internetworks in layers. To understand the importance of layering, consider the Open System Interconnection (OSI) reference model, which is a layered model for implementing computer communications. Using layers, the OSI model simplifies the tasks required for two computers to communicate. Hierarchical models for internetwork design also use layers to simplify the tasks required for internetworking. Each layer can be focused on specific functions, allowing you to choose the right systems and features for each layer. Hierarchical models apply to both LAN and WAN design.
Benefits of Hierarchical Models

The many benefits of using hierarchical models for your network design include the following:
Cost savings
Ease of understanding
Easy network growth
Improved fault isolation

After adopting hierarchical design models, many organizations report cost savings because they are no longer trying to do it all in one routing/switching platform. The modular nature of the model enables appropriate use of bandwidth within each layer of the hierarchy, reducing wasted capacity.

Keeping each design element simple and small facilitates ease of understanding, which helps control training and staff costs. Management responsibility and network management systems can be distributed to the different layers of modular network architectures, which also helps control management costs.

Hierarchical design facilitates changes. In a network design, modularity allows creating design elements that can be replicated as the network grows, facilitating easy network growth. As each element in the network design requires change, the cost and complexity of making the upgrade is contained to a small subset of the overall network. In large, flat, or meshed network architectures, changes tend to impact a large number of systems.

Improved fault isolation is facilitated by structuring the network into small, easy-to-understand elements. Network managers can easily understand the transition points in the network, which helps identify failure points.

Today's fast-converging protocols were designed for hierarchical topologies. To control the impact of routing overhead processing and bandwidth consumption, modular hierarchical topologies must be used with protocols designed with these controls in mind, such as EIGRP.

Route summarization is facilitated by hierarchical network design. Route summarization reduces the routing protocol overhead on links in the network and reduces routing protocol processing within the routers.