VXLAN
  
    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.