Exam 350-401 Topic 4 Question 1029 Discussion

VXLAN is a network virtualization technology that addresses the scalability problems associated with large cloud computing deployments. It allows for the creation of a logical network for each tenant or customer, supporting up to 16 million virtual networks. VXLAN encapsulates Layer 2 Ethernet frames within Layer 4 UDP packets, using MAC-in-UDP encapsulation, to enable Layer 2 adjacency across IP networks. This technology extends the Layer 2 segment ID field to 24-bits, providing a much larger scale than the traditional VLANs' 12-bit identifier, which supports only up to 4096 VLANs123.
References := Cisco's VXLAN Configuration Guide, Cisco Learning Network's Introduction to VXLAN, Wikipedia's VXLAN Article