A cloud design contains multiple hosts that are running a hypervisor. Each host has only two physical 10 Gb network adapters that are aggregated for bandwidth and failover. The physical switch ports for each host are configured as access ports. Each host will support numerous virtual machines and network segments. These virtual machines will communicate with other virtual machines on the same network segments.
Why would overlay networks be required for this design?
An overlay network is a computer network that is built on top of another network. Nodes in the overlay network can be thought of as being connected by virtual or logical links, each of which corresponds to a path, perhaps through many physical links, in the underlying network.
Virtual overlay networks use tunneling protocols to extend isolated network segments between servers for multi-tenant data center networks.
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