Which of the following is a characteristic of NSX-T's overlay networking?

The characteristic of NSX-T's overlay networking that stands out is the encapsulation of Layer 2 frames within Layer 3 packets. Overlay networking allows for the abstraction of the physical networking infrastructure, creating a virtual network that can operate independently of the underlying hardware. By encapsulating Layer 2 frames, it enables the transport of Layer 2 traffic over Layer 3 networks. This means virtual networks can be extended across physical boundaries, facilitating communication across different segments of the infrastructure without requiring changes to the underlying physical network.

This encapsulation mechanism allows for more flexibility in terms of networking since it decouples virtual workloads from the underlying physical network. It enables seamless movement of virtual machines across different hosts and data centers without concern for the physical network topology.

The other characteristics present in the options do not align with the defining features of NSX-T's overlay networking. For example, requiring direct integration with physical routers or being dependent on specific hardware manufacturers would limit flexibility and the primary benefits provided by a virtualized networking approach. Similarly, supporting only legacy networking protocols would not fully leverage the modern capabilities that NSX-T offers, which aims to support a wide range of networking functions and services beyond traditional practices.