Which encapsulation technology does NSX-T utilize for creating overlay networks?

NSX-T utilizes Geneve encapsulation for creating overlay networks, and this choice is correct because Geneve is specifically designed to support a variety of encapsulation needs in modern networking. It is a flexible, extensible protocol that allows for different types of network services and features to be included within the encapsulation header. This flexibility allows NSX-T to support a wide range of applications and services, enabling features like micro-segmentation, logical routing, and advanced networking capabilities.

Geneve encapsulation improves upon previous technologies by not only allowing encapsulation of packets but also supporting additional options and metadata, making it more suited for the dynamic and varying needs of cloud-native applications and multi-tenant environments. This adaptability is essential in environments where applications may require different types of networking and security features depending on their specific requirements.

The design of Geneve showcases its goal of simplicity and functionality, making it a preferred choice for modern overlay networks, particularly in the context of NSX-T's capabilities to deliver networking and security features in a software-defined data center.