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What is the role of an IP address on a tunnel interface?

L2 Linker

I noticed that in some of our SOHO sites, the tunnel interface for VPN to the data center has an IP address and in other cases it does not.  Can someone explain the value of having an IP address on the tunnel interface versus not? 

 

I'm working through an arp cache issue that arises on a SOHO site which does not specify an IP address but the site with the IP defined does not run into the same issue. It's long so I won't get into it here. 

 

A further oddity is that the PAN in the data center - it's route to the SOHO has a destination of the tunnel interface (tunnel.1) but no next hop IP address is defined, although the tunnel interface does have an IP address assigned to it. Then on the SOHO side, the route to the corporate network has the tunnel interface specified *and* a next hop value of the IP address of that same tunnel.

 

Insight appreciated.

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