Advantages and Disadvantages of Using VXLAN vs. VPLS in RouterOS 7

Advantages and Disadvantages of Using VXLAN vs. VPLS in RouterOS 7

With the advancements in RouterOS 7, MikroTik has provided extensive support for network technologies like VXLAN (Virtual Extensible LAN) and VPLS (Virtual Private LAN Service). These technologies serve to extend Layer 2 networks across Layer 3 infrastructures, but each has unique strengths and weaknesses, making them suitable for different scenarios.

Advantages of VXLAN

1. Scalability:
• VXLAN uses a 24-bit segment ID (VXLAN Network Identifier or VNI), allowing up to 16 million segments compared to VPLS's limitation of 4096 VLANs.
• Ideal for large-scale data center environments where multi-tenant isolation is required.
2. Layer 3 Underlay:
• VXLAN operates over a Layer 3 infrastructure, enabling greater flexibility in network design.
• Simplifies inter-data-center connectivity over IP/MPLS networks, reducing reliance on pure Layer 2 links.
3. Support for Modern Architectures:
• Integrates seamlessly with software-defined networking (SDN) controllers.
• Well-suited for virtualized and cloud-native environments.
4. Efficient Multicast Handling:
• VXLAN supports multicast in its underlay network, reducing broadcast domain overhead.
• Provides better performance for distributed applications.
5. Hardware Offloading:
• Many modern MikroTik devices support VXLAN hardware offloading, improving performance.

Disadvantages of VXLAN

1. Overlay Encapsulation Overhead:
• VXLAN encapsulates Ethernet frames within UDP packets, adding overhead.
• May require configuring MTU sizes appropriately to avoid fragmentation.
2. Complexity:
• Configuration requires proper understanding of the overlay and underlay network interplay.
• Integration with SDN controllers or gateways may increase deployment time and costs.
3. Limited Vendor Interoperability:
• Although widely adopted, differences in VXLAN implementations across vendors can create interoperability challenges.

Advantages of VPLS

1. Transparent Layer 2 Extension:
• Provides seamless Layer 2 connectivity over MPLS, making it simpler to extend VLANs across dispersed locations.
• Suitable for applications that rely on Layer 2 adjacency.
2. Point-to-Multipoint Support:
• Natively supports point-to-multipoint connectivity, ideal for carrier Ethernet services.
3. Lower Overhead:
• Minimal encapsulation overhead compared to VXLAN, conserving bandwidth.
4. Mature and Well-Understood:
• VPLS is a well-established technology with widespread support in MPLS-based service provider networks.

Disadvantages of VPLS

1. Scalability Limitations:
• Limited to 4096 VLANs due to its reliance on 12-bit VLAN IDs, making it less suitable for multi-tenant data centers.
2. Layer 2 Broadcast Traffic:
• VPLS can generate significant broadcast traffic, which may strain network performance in large deployments.
3. Dependency on MPLS:
• Requires MPLS infrastructure, which may not be available in all network environments.
4. Operational Complexity:
• Managing MPLS and VPLS configurations may require specialized knowledge.

VXLAN vs. VPLS in RouterOS 7

In RouterOS 7, MikroTik has significantly improved its VXLAN support, making it a strong contender for modern networking use cases. The added flexibility of operating over Layer 3 and compatibility with cloud-native architectures gives VXLAN an edge in data center environments. On the other hand, VPLS remains a reliable choice for service provider networks or scenarios requiring traditional Layer 2 extensions over MPLS.

When to Use VXLAN:

• Large-scale, multi-tenant environments.
• Modern data centers with virtualized workloads.
• Networks requiring IPv4 and IPv6 support with efficient Layer 3 routing.

When to Use VPLS:

• Carrier-grade Ethernet services.
• Simpler Layer 2 extension needs.
• Scenarios with existing MPLS infrastructure.