What is Network Virtualization? | VMware Glossary

One example of network virtualization is virtual LAN (VLAN). A VLAN is a subsection of a local area network (LAN) created with software that combines network devices into one group, regardless of physical location. VLANs can improve the speed and performance of busy networks and simplify changes or additions to the network.

Another example is network overlays. There are various overlay technologies. One industry-standard technology is called virtual extensible local area network (VXLAN). VXLAN provides a framework for overlaying virtualized layer 2 networks over layer 3 networks, defining both an encapsulation mechanism and a control plane. Another is generic network virtualization encapsulation (GENEVE), which takes the same concepts but makes them more extensible by being flexible to multiple control plane mechanisms.

VMware NSX Data Center – Network Virtualization Platform

VMware NSX Data Center is a network virtualization platform that delivers networking and security components like firewalling, switching, and routing that are defined and consumed in software. NSX takes an architectural approach built on scale-out network virtualization that delivers consistent, pervasive connectivity and security for apps and data wherever they reside, independent of underlying physical infrastructure.