I am having a problem of Understanding VXLAN

I am having a problem understanding vxlan topic , I tried to watch videos on youtube but still cant crasp.
I guess I have to wait for VXLAN topic.

Juniper explanation on VXLAN

This is the best document I have got so far but still can’t grasp much, need Atul sir to explain in simple words

thank you sir, really appreciate that

Sure! Let me explain VXLAN in simple terms, as if you are a fresher just getting started with networking.

What is VXLAN?

VXLAN stands for “Virtual Extensible LAN.” It is a technology used to extend and enhance traditional Ethernet networks, allowing you to create virtual networks on top of existing physical networks. VXLAN is commonly used in data centers and cloud environments to provide a flexible and scalable way to handle large numbers of virtual machines and workloads.

Why do we need VXLAN?

In traditional networks, each physical network is associated with a specific IP subnet. As the number of virtual machines and applications in a data center grows, it becomes challenging to manage and scale the network. VXLAN helps overcome this limitation by enabling the creation of virtual networks that can span across multiple physical network segments, making it easier to manage and organize network resources efficiently.

How does VXLAN work?

VXLAN works by encapsulating the original Ethernet frames from the virtual machines (VMs) inside a new VXLAN header. This encapsulation process adds extra information to the packet, including a VXLAN Network Identifier (VNI). The VNI acts like a tag, which allows VXLAN to differentiate between different virtual networks.

When a VM in one part of the data center wants to communicate with another VM in a different part of the data center, VXLAN allows the packets to travel over the physical network as if they were part of the same virtual network. The underlying physical network treats the VXLAN packets just like any other regular network traffic, while the VXLAN header helps direct the packets to the correct destination.

Benefits of VXLAN:

  1. Network Segmentation: VXLAN allows you to create multiple virtual networks on top of the same physical network, enabling network segmentation and isolation for better security and performance.

  2. Scalability: It provides a scalable solution to accommodate a large number of virtual machines and workloads in a data center or cloud environment.

  3. Flexibility: VXLAN makes it easier to move virtual machines between physical hosts and data centers without changing the underlying network configurations.

  4. Overlay Network: VXLAN works as an overlay network, abstracting the complexity of the underlying physical network and simplifying network management.

  5. Vendor-agnostic: VXLAN is an industry-standard technology, which means it can be implemented on different hardware and software platforms from various vendors.


VXLAN is a powerful technology that simplifies network management and enables efficient scaling of virtual networks in data centers and cloud environments. By using VXLAN, network administrators can create flexible, isolated, and scalable virtual networks that can coexist and communicate smoothly over the same physical infrastructure.
Hope it helps ! keep learning !