I read that it accepts traffic that matches the virtual server address and forwards it to the destination IP address that is specified in the request rather than load balancing the traffic to a pool.
what i understood is that F5 is default deny device..that is..any traffic that is directed to F5 and for which it doesn't have any VIP configured, it will simply drop traffic. In order for F5 to work as router to forward packets to other devices (L3 device),it needs forwarding VIP.
Let me know if i am understanding it Correctly or does it work differently? if anyone can give some example it would be good.
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Yes, you understood correctly
Review the ARP table in the upstream device to determine if ARP entries point to the previously active BIG-IP device.
If the ARP entries still point to the previously active device, clear the ARP table, and force the BIG-IP to resend GARP advertisements. Refer to the following article for more information: