Virtual Extensible LAN (VXLAN)

Virtual Extensible LAN, or VXLAN, is a network virtualisation technology used to transport Layer 2 Ethernet traffic across a Layer 3 IP network. Ethernet frames are encapsulated in UDP packets and transported between VXLAN Tunnel Endpoints, or VTEPs. VXLAN uses a 24-bit VXLAN Network Identifier, or VNI, to separate virtual networks. This provides significantly more logical network segments than traditional VLANs with their 12-bit VLAN ID field. VXLAN is particularly relevant in data centres, cloud infrastructures and virtualised network environments. The technology is frequently combined with EVPN as a control plane to exchange information about endpoints and network paths. VXLAN therefore enables scalable Overlay networks to operate across an existing IP-based Underlay infrastructure.