Is VXLAN the Answer to the Network Virtualization Question?

Network virtualization is a growing topic of interest and for some good reasons as networks scale to meet the challenges of cloud computing they are running up against VLAN scaling limitations. There have been several network overlay technologies released that seek to address the challenges with network scaling and to enable workload mobility. One of these technologies is VXLAN. It has a few proponents who say that it can meet the requirements for network virtualization. While it sounds good on the surface, it is worth it to take a closer look. With VMWorld happening this week in San Francisco I’m sure that network virtualization will be a hot topic, especially considering the VMware Nicera news, so I thought I’d comment on it and offer some thoughts and options.

The Origins of VXLAN
The VXLAN buzz started during a keynote at VMworld in August 2011, when VMware CTO Steve Herrod announced the Virtual eXtensible LAN protocol, which VMware positions as a technology that “enables multi-tenant networks at scale, as the first step towards logical, software-based networks that can be created on-demand, enabling  enterprises to leverage capacity wherever it’s available. Networking vendors Cisco and Arista are actively promoting VXLAN and have collaborated with VMware to develop and test the technology on their products. Cisco highlighted VXLAN at their Cisco Live user conference again in June 2012 and Arista is demoing it at VMWorld, however with the Nicira announcement VMWare seems to have taken that next step. VXLAN sounds interesting, so let's see how good of an idea it is.