Additionally, VXLAN is more scalable than pure L2, especially when control-plane learning is implemented, because excessive BUM (broadcast, unknown unicast and multicast) frame flooding is suppressed. This, combined with the fact that hardware VTEPs minimise the latency overhead of VXLAN implementations, means we can build a network that is more scalable and robust, without sacrificing performance.
Probably the greatest advantage a VXLAN solution has over a pure Layer 2 (L2) network is the elimination of the risks associated with L2 domains spanning multiple logical switches. For instance, an entirely L3 network with a VXLAN overlay is not susceptible to the spanning tree faults that have been experienced by some major Australian organisations.
More specifically, a VTEP can refer to a virtual interface similar to an SVI that exists on such a device. Such an interface will often connect to the local device’s internal bridge implementation and act as the local source of VXLAN frames and the destination for remote MACs.