One of the most important functions of NSX is enabling virtual networks. These virtual networks or overlay networks have become very popular due to that fact that they can leverage an existing network infrastructure without the need to modify it in any way. The decoupling of logical networks from the physical infrastructure allows users to scale rapidly. Overlay networks or VXLANs were developed by a host of vendors that include Arista, Cisco, Citrix, Red Hat, and Broadcom. This allows the VXLAN standard to be implemented by multiple vendors due to this joint effort in developing its architecture.

VXLAN is a layer 2 over layer 3 tunneling protocol that allows for logical network segments to extend on routable networks. This is achieved by encapsulating the Ethernet frame with additional UPD, IP, and VXLAN headers. Consequently, this increases the...