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VXLAN easily switches over routing. VXLAN allows you to create a Layer 2 network on top of a Layer 3 network, using underlay and overlay networks.
It is similar to what MPLS VPN achieves. However, the core P-routers have no knowledge of the overlay networks — they simply route based on the external MPLS label.
The difference is that MPLS VPN provides logical Layer 3 networks, while VXLAN delivers Layer 2 overlay networks.
Therefore, to understand how VXLAN is implemented, we must first understand how the underlay network is built. VXLAN relies on this underlay network to establish its overlay network.
📌 How is the underlay network built?
📌 Once reachability has been established between VTEPs using an IGP or BGP, how are the VXLAN overlay tunnels set up?
📌 How does a VTEP forward Layer 2 frames from a locally connected source to a MAC destination located behind another VTEP?
📌 How are unicast MAC addresses learned across the VTEP cloud?
📌 How is broadcast, unknown unicast, and multicast (BUM) traffic sent across the VTEP cloud?
📌 How do you ensure there are no loops in the network?
📌 How do you efficiently utilize the available bandwidth in the underlay network using ECMP?
📌 How do you adapt to dynamic changes in endpoint MAC addresses — for example, VM mobility?
Below is an introduction to the implementation steps.
➡️ VXLAN adds over 50 bytes of overhead to the Layer 2 frame, so be prepared to increase the standard MTU along the path.
➡️ A loopback interface should be used as the NVE (Network Virtualization Endpoint) interface on all virtual WORKLOAD devices. This will serve as the VTEP source through which other VTEPs can be reached.
➡️ An interior gateway protocol (IGP) such as OSPF or BGP can be used as the underlay routing protocol to provide VTEP reachability via the NVE.
➡️ Multicast group to VNI mapping must be configured on the external VTEP interfaces.
➡️ VNI to VLAN mapping must be configured on the internal interfaces of the VTEPs.
Let’s understand it step by step and connect all the pieces together!
