VXLAN Gateway

VXLAN is an overlay technology that enables you to stretch Layer 2 connections over an intervening Layer 3 network by encapsulating (tunneling) Ethernet frames in a VXLAN packet that includes IP addresses. You can use VXLAN tunnels to enable migration of virtual machines between servers that exist in separate Layer 2 domains by tunneling the traffic through Layer 3 networks. This functionality enables you to dynamically allocate resources within or between data centers without being constrained by Layer 2 boundaries or being forced to create large or geographically stretched Layer 2 domains. Using VXLANs to connect Layer 2 domains over a Layer 3 network means that you do not need to use STP to converge the topology (so no links are blocked) but can use more robust routing protocols in the Layer 3 network instead.