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, X695 series switches.