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DiffServ deals with bulk flows of data rather than single flows and single reservations. This means that a single negotiation will be made for all of the packets from, for example, a single ISP, or a single university. The contracts resulting from these negotiations are called " service level agreements", and will inevitably involve money changing hands. These service level agreements will specify what classes of traffic will be provided, what guarantees are needed for each class, and how much data will be sent for each class.
A "DiffServ cloud" is a collection of DiffServ routers. When packets enter a DiffServ cloud they are first classified by the sender. The sender sets the " type of service" field (which hence is also called DiffServ Code Point - DSCP), in the IP header according to the class of the data, so that the better classes get higher numbers.
As the packets enter the DiffServ cloud they are policed by the receiver. If there is so much traffic that it breaches the service level agreement, then the sender may be liable for fines, according to the details of the contract. Within the DiffServ cloud, all the individual routers need to do is to give highest priority to the packets with the highest value in the type of service field, which is simple to implement. There may also be a discard policy on the frequencies with which each type of packet is discarded if the router runs out of buffer space.
There are many ways to split up traffic into classes. For example, the traffic may be split into Gold, Silver, and Bronze classes. In each router, Gold traffic takes precedence over Silver traffic, which takes precedence over Bronze.
Special handling may be done in at least two different ways:
There are also many other schemes involving hybrids of these and other Quality of Service strategies.
Example: Prioritizing specific data on communications networks.