Network segmentation is required due to overlapping IP address space and M&A scenarios.

In modern enterprise environments, particularly those undergoing Mergers and Acquisitions (M&A), engineers often face the challenge of overlapping IP address space.4 Prisma SD-WAN addresses this by utilizing Virtual Routing and Forwarding (VRF) profiles.5 A VRF creates a separate routing table instance within the ION device, allowing multiple networks to coexist on the same physical hardware even if they use the same IP ranges.

To achieve end-to-end connectivity while maintaining strict segmentation, these VRF profiles must be correctly associated with site bindings.7 When a VRF is "bound" to a site, the ION device ensures that traffic belonging to that specific segment remains isolated not only locally (on the LAN) but also across the secure SD-WAN fabric. Prisma SD-WAN achieves this by encapsulating the traffic within the overlay tunnels and tagging it with a unique VRF identifier.8 This ensures that a "Corporate" VRF at Site A can only communicate with the "Corporate" VRF at Site B, effectively keeping "Guest" or "Acquisition" traffic completely separate.

This architectural approach is superior to traditional underlay segmentation (Option A) or simple interface-based virtual routers (Option D) because it provides a centralized, software-defined method to manage multi-tenancy. By using VRF profiles, administrators can define a global security and routing posture once and push it to all relevant sites.9 This simplifies the integration of new business units with conflicting IP schemes, as the Prisma SD-WAN controller handles the complex orchestration required to maintain path selection and security policies uniquely for each VRF across the entire global network.