What it means:
Virtual Extensible LAN (VXLAN) is a standard based encapsulation protocol that enables running an overlay network on the top of an existing physical network. An overlay network is a virtual network that delivers L2 services on the top of an exiting L3 network infrastructure creating new virtual L2 broadcast domains decoupled from the underlay network physical topology.
Why you should care:
VXLAN makes it easier for network engineers to bridge network segments across physical locations separated by L3 boundaries. It also facilitates traffic isolation between various applications and various classes of users or tenants, promoting security and privacy. VXLAN deployed on campus networks can speed up new location onboarding and reduces complexity when deploying new applications and network services across the campus.