VXLAN - Use Cases

VXLAN is a technology that is primarily focused on delivering virtualized Layer 2 networks over a Layer 3 infrastructure to overcome the limitations of traditional VLANs.

The most commonly referenced use case is within datacenters, and this is indeed the case. However, there are other areas in which VXLANs are well suited to be used. A list of use cases follows:

  1. Data Center Overlays:
    • As data centers grow, there's a need to logically segment and isolate workloads while using a shared infrastructure. VXLAN can overlay multiple logical networks on a single physical infrastructure, ensuring efficient multi-tenancy and resource utilization.
  2. Cloud Service Provider Multi-tenancy:
    • Cloud providers host workloads for multiple tenants. VXLAN provides the capability to isolate each tenant's traffic, ensuring security and segmentation on shared infrastructure.
  3. Stretching Layer 2 Across Data Centers:
  4. Hybrid Cloud Connectivity:
    • Organizations often utilize a mix of on-premises, private cloud, and public cloud resources. VXLAN can play a role in ensuring consistent networking across these varied environments, making workload migration and interconnectivity more manageable.
  5. Enhanced Network Security and Segmentation:
    • With the rise of security threats and the need for compliance in certain sectors, there's a heightened emphasis on network segmentation. VXLAN can create isolated logical networks, reducing the risk of lateral movement in case of breaches.
  6. Network Simplification and Aggregation:
    • In environments with multiple, disparate Layer 2 networks, VXLAN can be used to aggregate these onto a single, unified Layer 3 backbone, simplifying management and reducing hardware requirements.