VTEPs acting as Layer 3 gateways would also have to support routing traffic that ingresses the VTEP on a VXLAN tunnel whose next hop is reachable through another tunnel. In Routing in and out of a Tunnel, H3 determines that the gateway to reach H4 is VTEP A. Traffic from H3 is VXLAN-encapsulated with VNI “Red” and Layer 2 forwarded to VTEP A by VTEP B. VTEP A decapsulates the traffic, performs a route lookup, and then determines that H4 is reachable through VTEP C. VTEP A now encapsulates the traffic with VNI “Green” and Layer2 forwards the traffic toward VTEP C.
Routing traffic in and out of tunnels is supported on ExtremeSwitching X465, X590, X690, X695 , 5320, 5420, and 5520 series switches.