How Does VXLAN Impact My Data Center?

Even virtual local area networks (VLANs) can be virtualized, which can be automated. This is thanks to VXLAN, a virtual networking service that can move traffic from Layer 2 to Layer 3, allowing frames to exit internal networks. 

If you’re a data center technician or engineer, VXLANs can be a massive timesaver while increasing network efficiency. Let’s look at VXLAN — and how it can impact your data center. You’ll never look at VXLAN the same way again. 

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What is VXLAN?

VXLAN is a virtual version of a VLAN. Let’s examine it. A typical enterprise environment segments a single campus-wide (or building-wide) network into different pieces. There are various ways to do this, but the most common is by implementing multiple VLANs. 

Let’s say you own a factory that manufactures whacky waving inflatable flailing armmen. These are extraordinary inflatable flailing armmen that require extreme precision to manufacture. If they aren’t made right, they won’t wave properly. Nor will they dance. Used car dealerships will not stand for that. 

However, computerized equipment is used to manufacture these sensitive, air-fueled dance mavens. These precision machines run on Windows XP-like medical equipment and cannot be updated. To make matters even worse, the folks that made these machines went out of business years ago. You can’t buy upgrades. 

Every IT pro who reads those last few paragraphs is now groaning with appreciation. This scenario is far more common than any of us want to admit. 

One of the ways we secure these virus farms is by putting them on their network away from everything else. It’s not feasible to run an air-gapped, independent network just for your factory. So, your network engineers plop those devices on their own VLAN. That VLAN operates like a ‘virtually segregated network’ using the same networking hardware. 

VXLAN is like a virtualized VLAN. It is far more capable, though. 

How Does VXLAN Work? 

If you’re a budding IT pro, you may not have much experience with network automation or virtualized systems. There is a good chance you played with Hyper-V because it’s free and included with Windows. So, let’s leverage Microsoft’s hypervisor as an example to explain how VXLAN works. 

One of the first things you do when configuring Hyper-V is create a virtual switch. If your computer is powerful, you can make enough virtual computers to power a small business. Each of those computers is like a single human inside the Matrix. Each is its own thing, but they live a virtual life inside a much larger entity. 

Just because each computer lives inside the Matrix doesn’t mean they don’t need a way to communicate. In The Matrix, we still use cellular and landline phones even though there is no spoon… I mean the phone. Despite no physical switches inside Hyper-V, computers still use switches and network cables to communicate. Let’s build on top of that. 

VXLAN is a virtual networking service. It lives and dies by the OSI model just like anything else to do with a network. 

In the OSI model, network traffic bumbles about within the same network on Layer 2. If data needs to exit the network, it must hop over to Layer 3. This is incredibly simplified, but keep with me. The most significant difference between Layer 2 and 3 is the network components required to move frames from one location to another. 

The important thing to understand here is that a VLAN operates on Layer 2. VLANs are used for internal networks. However, VXLANs are capable of moving traffic from Layer 2 to Layer 3, so frames (packets) can exit the internal network. VXLANs also have far fewer restrictions than VLANs since they are virtualized. 

How Does VXLAN Impact Data Centers?

In the last section, we explained how VXLAN works at a high level. The biggest takeaway from that section is that VXLAN allows network traffic to exit the internal network while VLAN does not. Likewise, VXLAN has fewer restrictions. 

Why does VXLAN impact a data center?

Data centers like AWS and Azure exist in multiple locations worldwide. If configured properly, services running in Asia can use services running in North America as if they were on the same network. See how powerful that is?

Because VXLAN is virtualized, it can also be highly automated. Suppose a new AWS customer comes along and asks for a private network all to themselves. In that case, AWS can automate the deployment of that private network automatically — that customer doesn’t need to wait for network engineers to build their network for them. 

You can have a lot more VXLANs than VLANs, too. A large business may not use every VLAN it can on its network. However, a data center like AWS will use more VLANs of an order of magnitude than possible. Since AWS supports millions of customers worldwide, it needs to be able to segregate networks in a million different ways (literally). 

All this is to say that VXLAN lets data centers operate more efficiently and more automatically (Yes, more automatically. VXLAN has more automation capabilities than VLAN), faster, and with easier management.