Cisco + VMware = VXLAN enables cross subnet virtual networks

Cisco and VMware have introduced Virtual eXtensible Local Area Networks. This is basically MAC-in-UDP encapsulation that enables the deployment of Virtual Machine clusters across L3 boundaries.

Oh, and it’s also been submitted to the IETF.

Read Martín Casado’s take on this, and Ivan’s comments are also worth taking a look at.