Every provider VDC that is backed by NSX Data Center for vSphere includes a VXLAN network pool.

When you create a provider VDC that is backed by NSX Data Center for vSphere, you can associate that provider VDC with an existing VXLAN network pool, or you can create a VXLAN network pool for the provider VDC.

A newly created VXLAN network pool is given a name derived from the name of the containing provider VDC and attached to it at creation. You cannot delete or modify this network pool. If you rename a provider VDC, its VXLAN network pool is automatically renamed.

Note: To ensure optimal network performance across your infrastructure, create one VXLAN network pool and associate it with all your provider VDCs upon their creation.

VMware Cloud Director VXLAN networks are based on the IETF VXLAN standard, and provide various benefits.

  • Logical networks spanning layer 3 boundaries
  • Logical networks spanning multiple racks on a single layer 2
  • Broadcast containment
  • Higher performance
  • Greater scale (up to 16 million network addresses)

For more information about VXLAN networks in a VMware Cloud Director environment, see the NSX Administration Guide.