VTEP also know as VXLAN Tunnel Endpoint has a very significant role on NSX platform. VTEP works on VMKernel port group created on ESXi host. VXLAN is hyper-visor based kernel module and installed during ESX host preparation via NSX manager.
It handles all encapsulation and decapsulation for VXLAN network.
VTEP Table- Every VTEP on ESXi hosts reports the VNIs that they are a member of to the NSX Controller. NSX Controllers maintain this list and send it to all VTEPs.
Each VTEPs has a full inventory for VNIs in which they participate. NSX Controllers also use this list to select the VTEP Proxies as well.
MAC Table - VTEPs will report every known MAC address in each VNI to the NSX Controller. this will cut the unnecessary ARP request flooded among the individual hosts VTEPs. If a VTEP needs a MAC of an IP, it will request to NSX controller. If NSX Controller has the entry of that it will return to the VTEP and if not then NSX controller will flood this request to other VTEPs like a broadcast.
IP Report- Each VTEPs will send the MAC address and IP mappings details to NSX controller.
ARP Table- NSX controller uses the IP report which includes MAC address and IP mappings to create the ARP table.
Whenever a VM sends an ARP request, it is captured by the VTEP.
If the VTEP knows the answer it will reply to VM.
If VTEP does not know the answer then it will request from NSX controller.
If NSX controller does not know the answer, the request will broadcast to all VMs in the same VNI.
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