Hive Mind,
I have a customer who started selling a landed a largish VPN contract
for people all over the world. Since then, he pushes about 40mbps of
IPSec traffic, which is growing steadily. Around the same time I
noticed that CPU usage on the distribution 3550 that he is attached to
started going up (has always been ~1%); it is now running between
20-35% depending on the time of day.

My only guess is that 3550s switch IPSec packets in software. Is this the case?

This Cisco document that I found agrees, but it extremely vague:

http://www.cisco.com/en/US/products/hw/routers/ps359/products_tech_note09186a00801c2af3.shtml
-Traffic that cannot be interrupt-switched arrives
 #IP packets with options
 #Packets that require protocol translation
 #Multilink Point-to-Point Protocol (supported in Cisco Express
Forwarding switching)
 #Compressed traffic
    If there is no Compression Service Adapter (CSA) in the router,
compressed packets must be process-switched.
 #Encrypted traffic
    If there is no Encryption Service Adapter (ESA) in the router,
encrypted packets must be process-switched.


I am concerned that when his traffic eventually gets large enough that
it will cripple the switch. I know that the solution is to stick him
on something with more guts - I am just looking to see if there is any
anecdotes out there about this situation.

Thanks,
Randal
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