MX has two Deployment Options (Routed (NAT) Mode and Passthrough/VPN Concentrator Mode)
Routed (NAT) Mode
Routed mode on a Cisco Meraki MX is best used when the security appliance will be connecting directly to your internet demarcation point. When this is the case, the MX will have a public IP address that is issued by the internet service provider. The MX will also be the device handling the routing for clients to the internet, and any other networks configured for the device to communicate to. This mode is optimal for networking environments that require a security appliance with Layer 3 networking capabilities.
NAT Mode Considerations
A Cisco Meraki MX security appliance operating in NAT mode is best deployed when its WAN connection is directly connected to the ISP handoff
An MX can operate in NAT mode if it is behind another Layer 3 device that is also performing NAT, but you may run into complications with Meraki cloud connectivity, as well as some features such as Meraki Auto VPN
Passthrough/VPN Concentrator Mode
Passthrough mode on a Cisco Meraki MX configures the appliance as a Layer 2 bridge for the network. The MX in this mode will not perform any routing or any network translations for clients on the network. Passthrough/Concentrator Mode is best used when there is an existing Layer 3 device upstream handling network routing functions. The MX in this instance would still act as a security appliance, but with less functionality for Layer 3 networking.
The recommended use case for the MX security appliance in passthrough mode is when it is acting as a VPN Concentrator for the Cisco Meraki Auto VPN feature. Passthrough/VPN Concentrator mode ensures easy integration into an existing network that may already have layer 3 functionality and edge security in place. With this mode, a Cisco Meraki MX security appliance can be integrated into the existing topology and allow for seamless site to site communication with minimal configuration needed.
Passthrough/VPN Concentrator Considerations
The Cisco Meraki MX will not perform layer functions such as NAT or routing.
An MX in passthrough/VPN concentrator mode will act as a layer 2 firewall that will integrate into the existing LAN with a layer 3 routing appliance upstream.
VPN destined traffic will need to be directed to the MX security appliance for effective routing to the VPN endpoint. As such, static routes on other Layer 3 capable devices may be needed for full VPN functionality.
MX appliances in passthrough are able to allow IPv6 traffic to pass across the existing LAN if the traffic flows through the MX.
I am not a Cisco Meraki employee. My suggestions are based on documentation of Meraki best practices and day-to-day experience.
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