Introduction to VXLAN
In the previous post, we looked at some of the challenges with L2-based networks. Now let’s start diving into what VXLAN is and what it can provide. First, let’s talk about overlays.
Overlays
Overlays are not new. We have had overlays for many years. The most well known ones are probably GRE and MPLS. In general, overlays are used to create a level of indirection that extends network capabilities. For example, MPLS L3 VPNs provided some of these capabilities to IP networks:
- Segmentation.
- Overlapping IPs.
- Custom topologies.
- Scaling.
- Multihoming.
With overlays, intelligence is often pushed to the edge of the network while intermediate devices can be “dumb”. This can reduce costs as not all devices need the advanced features. How does an overlay work? To create the indirection, the original frame or packet needs to be encapsulated. Depending on the type of overlay, the frame or packet could get encapsulated into another frame or packet. The transport between the overlay nodes is called the underlay. This is the network that transports packets between the nodes. For VXLAN, this is a layer 3 network.
Because overlays encapsulate frames or packets, the size of the frame or packet will increase. To compensate Continue reading


