You install the system from LiveCD, which you create before installation.

The installation process uses LiveCD as the source image, formats the device on which the system is being installed, installs the system, and, if possible, preserves configuration from previous installations. When the installation is completed you reboot your system and the newly installed system begins running. This method is called disk-based installation and uses the binary system image for installation. Disk-based installation allows you to install multiple versions of the vRouter as images and switch between the images easily.