Cisco IP Base vs IP Services

The four common Cisco IOS Software feature licenses for switching are:
LAN Lite:              Enterprise EntryLevel Layer 2 Switching
LAN Base:            Enterprise Access Layer 2 Switching
IP Base:                Enterprise Access Layer 3 Switching
IP Services:         Advanced Layer 3 Switching

The IP base is for the Standard Multilayer Software Image (SMI) switches, and the IP services image is for the Enhanced Standard Multilayer Software Image (EMI) switches in Cisco IOS  Software Release 12.2(25)SEB and later.
For the Catalyst 3750 and 3560 switches, Cisco IOS Software Release 12.2(25)SEA and earlier referred to the image that provides Layer 2+ (L2) features and basic Layer 3 routing as the Standard Multilayer Image (SMI). The image that provides full Layer 3 routing and advanced services was referred to as the EMI.
The inter VLAN routing feature is supported on both IP base or SMI and IP services or EMI image Layer 3 switches. For Layer 2-only switches, you require a Layer 3 routing device with any of the previous images.
The IP Base feature set includes advanced quality of service (QoS), rate limiting, access control lists (ACLs), and basic static and Routing Information Protocol (RIP) functions. Dynamic IP routing protocols (Open Shortest Path First (OSPF), BGPv4, Enhanced Interior Gateway Routing Protocol (EIGRP)) are available only on the IP services image.
The IP Services image provides a richer set of enterprise-class features, which includes advanced hardware-based IP unicast and IP Multicast routing. Support for IPv6 Layer 3 switching in hardware is also available with the addition of the Advanced IP Services license to either the IP Base or the IP Services images. Both the IP base Image and the IP services image allow for Layer 3 and Layer 4 lookups for QoS and security.

The Bottom Line
I know that there are many technical details here. The takeaway is that if you have a basic layer 2 access network with essentially no routing needs and no advanced security or management requirements, you might want to consider LAN Lite. For most enterprise layer 2 networks, LAN Base is a minimum requirement. It gives you a robust layer 2 access network with excellent network manageability, security and user experience.

If you require dynamic routing for your enterprise access networks, you’ll need to begin with IP Base. It gives you full layer 2 capabilities, plus robust layer 3 features to support your access network with enhanced scale, performance and network services such as security and application optimization. IP Services takes you one step further with full scale support of unicast and multicast routing protocols, as well as critical services such as network segmentation and IPv6 support for OSPF/EIGRP to enable the full experience of the next generation workplace.

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