Using VXLAN to Speed & Secure Your Clouds

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Ariel Shuper is senior director of product management at Mellanox Technologies

Mellanox Technologies

The immense growth of IaaS cloud computing has given rise to a need for highly scalable and secure virtual networks, without requiring significant investment in replacing or adding to the existing infrastructure. One virtual overlay technology that has emerged to address this is VXLAN, which uses MAC-in-UDP tunneling to capitalize on the best aspects of existing layer 2 infrastructure and the advantages of layer 3 transport.

However, while VXLAN seems an ideal solution, this article points out performance challenges that arise with its usage, which must be addressed for its benefits to be fully realized.

Background: The Need for Virtualized Overlay Networks

Over the past few years, cloud computing has grown at a tremendous rate, with worldwide spending on IT cloud services tripling since 2008 and expected to reach over $100 billion in 2014.1 More specifically, Infrastructure as a Service (IaaS) is the fastest-growing segment of the public cloud services market, having grown over 45% in 2012 alone.2

IaaS allows multiple tenants to share system resources and infrastructure, which improves hardware utilization, thereby reducing the cost of the IT infrastructure, both at implementation and ongoing. Cloud computing also provides a measure of agility that simplifies the IT management process, provides additional control over proprietary data, and improves the end-user experience.

The IaaS segment of cloud computing is based on the concept of multiple tenants sharing the cloud infrastructure, enabled primarily by server virtualization. IaaS offers the following additional benefits to its consumers:

  • Allows a company’s IT department to focus on core competencies instead of assembling and maintaining network infrastructure
  • Enables dynamic scaling of infrastructure services based on usage demands
  • Reduces upfront investment costs, and changes ongoing costs from CAPEX to OPEX
  • Provides access to the infrastructure from any location on any device

IaaS providers need to support multiple tenancies on their data center infrastructure, creating the need to isolate each tenant within the network to provide the security and traffic isolation levels that independent infrastructure provides. This has typically been achieved through the use of VLANs, which segment the network into virtual network entities to provide security and network traffic control.

As the demand for cloud services continues to grow, many large consumers have outgrown the most basic solutions. For example, VLAN usage is limited to 4,096 entities (VLAN IDs), which, given the tremendous growth in the size of cloud-based networks, is far from sufficient segmentation. A more scalable solution has become a necessity.

A similar concern exists with regard to security. VLAN grouping has its limitations in terms of network isolation, so there is renewed interest in a more comprehensive security solution.

A number of solutions exist to address these issues, each with its own advantages and disadvantages. Technologies such as multiple VLANs (known as Q-in-Q) or MAC-in-MAC try to address the scalability concern by multiplying the number of possible VLAN IDs or MAC addresses that are used. Such technologies, however, remain in the Layer 2 (L2) domain, which means there are inherent challenges in scaling to a high number of entities. For example, Spanning Tree (STP), Rapid Spanning Tree (RTSP), or Multiple Spanning Tree (MSTP) are typically used to prevent loops, but half the connections in the “tree” are reserved (stand-by) for link failures.

An additional challenge in using new VLAN or MAC addresses stems from the need for configuration changes to the existing Layer-2 infrastructure, which complicates Virtual Machine (VM) and workload migration from server to server in the virtual domain.

As demonstrated in Figure 1, an approach that is now being introduced successfully for addressing these challenges is to create a virtual network that transports data across existing Layer-3 (IP) infrastructure. The virtual network is overlaid on the physical Layer-3 (L3) network, which hosts the virtual machines and hypervisors. By adding this virtual overlay network in L3, administrators will be able to logically isolate and scale their cloud-based services without having to significantly reconfigure or add to existing infrastructure.
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Figure 1: Network Virtualization Before and After Overlay Network

VXLAN Technology

In order for an overlay network to be of any use, a technology is required to encapsulate data such that it can tunnel into Layer 2 and be carried across Layer 3. One leading technology that provides this encapsulation and aims to resolve both the security and scalability issues is Virtual Extensible LAN (VXLAN). VXLAN technology provides a solution for stretching the L2 network over the virtual L3 IP network.

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Figure 2: VXLAN Encapsulation

The VXLAN concept is based on a new encapsulation for VM traffic in which the new encapsulation creates a MAC-in-UDP tunnel for the VM traffic. As Figure 2 shows, it encapsulates the VM’s Layer 2 (Ethernet) traffic with new MAC, IP, and UDP headers. It also adds a VXLAN ID, a 24-bit identifier that radically extends the address space of the VLANs from 4,094 segments up to 16.7 million available IDs, solving the scalability issue.

The encapsulation consists of:

  • An outer MAC address, which provides the physical destination and source addresses of the hypervisors or of intermediate L3 routers
  • An optional 802.1q address to further delineate VXLAN traffic on the LAN
  • Outer IP addresses, which are the IP addresses assigned to the hypervisors that are communicating over L3
  • An outer UDP port
  • A VXLAN ID that designates the specific VXLAN on which the communicating VMs reside

The encapsulation and decapsulation process is handled within the hypervisor, which connects the virtual switch with the IP network. The hypervisor, therefore, ensures that the virtual machines themselves are completely unaware of the VXLAN that has been implemented.

The hypervisor is assigned an IP address and acts as the host for the IP network. The virtual switch is assigned the VXLAN segment ID, which is then assigned to an IP multicast group.

Multicasting is yet another benefit of transporting messages via L3, as opposed to L2, which only offers broadcasting. The hypervisor determines whether the communicating virtual machines are within the same multicast group and thereby determines whether unicast or IP multicast is required. The hypervisor is able to differentiate between individual logical networks and to identify new virtual machines to be associated with multicast groups.

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