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VXLAN allows layer 2 segments to span layer 3 networks by encapsulating Ethernet frames within UDP packets. This allows virtual machines and servers to communicate securely across physical networks as if they were on the same local area network. VXLAN uses VXLAN Tunnel End Points and a VXLAN Network Identifier to encapsulate packets and identify virtual network segments. Up to 16 million virtual networks can be created, enabling data center tenants and workloads to be isolated from each other while residing on the same physical network.












