QoS explained by Cisco

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Internetworking Technology Handbook - Quality of Service (QoS) - Cisco Systems

QoS Concepts
Fundamentally, QoS enables you to provide better service to certain flows. This is done by either raising the priority of a flow or limiting the priority of another flow. When using congestion-management tools, you try to raise the priority of a flow by queuing and servicing queues in different ways. The queue management tool used for congestion avoidance raises priority by dropping lower-priority flows before higher-priority flows. Policing and shaping provide priority to a flow by limiting the throughput of other flows. Link efficiency tools limit large flows to show a preference for small flows.

Cisco IOS QoS is a tool box, and many tools can accomplish the same result. A simple analogy comes from the need to tighten a bolt: You can tighten a bolt with pliers or with a wrench. Both are equally effective, but these are different tools. This is the same with QoS tools. You will find that results can be accomplished using different QoS tools. Which one to use depends on the traffic. You wouldn't pick a tool without knowing what you were trying to do, would you? If the job is to drive a nail, you do not bring a screwdriver.

QoS tools can help alleviate most congestion problems. However, many times there is just too much traffic for the bandwidth supplied. In such cases, QoS is merely a bandage. A simple analogy comes from pouring syrup into a bottle. Syrup can be poured from one container into another container at or below the size of the spout. If the amount poured is greater than the size of the spout, syrup is wasted. However, you can use a funnel to catch syrup pouring at a rate greater than the size of the spout. This allows you to pour more than what the spout can take, while still not wasting the syrup. However, consistent overpouring will eventually fill and overflow the funnel.

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