What is the significance of "Distributed Routing" in NSX-T?

The significance of "Distributed Routing" in NSX-T lies in its ability to perform routing at the hypervisor level, which effectively minimizes traffic between virtual machines (VMs) residing in the same host. This architecture allows for efficient data packet handling as it reduces the need for traffic to traverse through external physical routers. By enabling routing capabilities at the hypervisor layer, NSX-T streamlines the flow of communications within the virtual environment, resulting in lower latency and improved performance for applications.

This distributed model empowers each hypervisor to manage its own routing, thus optimizing the overall network efficiency and reducing bottlenecks that may occur when all traffic is forced through centralized devices. This enhancement is particularly beneficial in large-scale environments where rapid communication between VMs is crucial.