Cisco Nexus 7000 Series Configuration Manual page 23

Configuring VXLAN Flood and Learn
VXLAN Layer 3 Gateway
All VMs and physical servers and VNIs belonging to the same tenants can communicate. Any packet that
needs to be routed across VNIs needs to be sent to the Layer 3 gateway switch, by setting the outer IP to the
Layer 3 gateway IP, and the inner DMAC to be the Layer 3 gateway MAC.
Figure 1: Layer 2 VXLAN Topology
The implications of the limited Layer 3 gateway functionality are the following:
• Since the Layer 3 gateway is centralized, there is no need to run control protocols (to advertise the host
reachability information). When the Layer 3 gateway receives the packet, it looks at the Layer 3 header
Cisco Nexus 7000 Series NX-OS VXLAN Configuration Guide
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