Overlay vs Underlay Networks

Overlay vs underlay in summary

An Underlay network is the physical network responsible for the delivery of packets like DWDM, L2, L3, MPLS, or internet, etc. while an overlay is a logical network that uses network virtualization to built connectivity on top of physical infrastructure using tunneling encapsulations such as VXLAN, GRE, IPSec.

https://telcocloudbridge.com/blog/overlay-vs-underlay-networks/

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