Encapsulation modes
IPsec supports the following encapsulation modes: transport mode and tunnel mode.
Transport mode
The security protocols protect the upper layer data of an IP packet. Only the transport layer data is used to calculate the security protocol headers. The calculated security protocol headers and the encrypted data (only for ESP encapsulation) are placed after the original IP header. You can use the transport mode when end-to-end security protection is required (the secured transmission start and end points are the actual start and end points of the data). The transport mode is typically used for protecting host-to-host communications, as shown in Figure 110.
Figure 110: IPsec protection in transport mode
Tunnel mode
The security protocols protect the entire IP packet. The entire IP packet is used to calculate the security protocol headers. The calculated security protocol headers and the encrypted data (only for ESP encapsulation) are encapsulated in a new IP packet. In this mode, the encapsulated packet has two IP headers. The inner IP header is the original IP header. The outer IP header is added by the network device that provides the IPsec service. You must use the tunnel mode when the secured transmission start and end points are not the actual start and end points of the data packets (for example, when two gateways provide IPsec but the data start and end points are two hosts behind the gateways). The tunnel mode is typically used for protecting gateway-to-gateway communications, as shown in Figure 111.
Figure 111: IPsec protection in tunnel mode
Figure 112 shows how the security protocols encapsulate an IP packet in different encapsulation modes.
Figure 112: Security protocol encapsulations in different modes