VXLAN is a network virtualization technology that leverages existing Layer
3 infrastructures to create tenant overlay networks. VXLAN addresses the requirements of a
multi-tenant data center network infrastructure by:
Increasing virtual network scalability to 16 million
instances. This allows for tenant VLAN isolation whereby
multiple tenants can manage their own VLAN/VMAN and MAC address spaces.
Adding an encapsulation that effectively hides VM MAC addresses from
the physical network that results in physical networking devices to have smaller MAC and
IP table sizes.
Allowing for Layer 2 adjacency across IP networks by which DC
network operators protect their investment in their current infranstructure. Additionally
operators can distribute traffic loads across links efficiently using Layer 3 ECMP.
