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350-401 · Question #746

350-401 Question #746: Real Exam Question with Answer & Explanation

The correct answer is B: It supports multitenant segments.. VXLAN (Virtual Extensible LAN) is an overlay network technology that enables the creation of highly scalable multitenant segments, using a 24-bit identifier to support millions of logical networks.

Submitted by miguelv· Mar 6, 2026Virtualization

Question

What is one characteristic of VXLAN?

Options

  • AIt supports a maximum of 4096 VLANs.
  • BIt supports multitenant segments.
  • CIt uses STP to prevent loops in the underlay network.
  • DIt uses the Layer 2 header to transfer packets through the network underlay.

Explanation

VXLAN (Virtual Extensible LAN) is an overlay network technology that enables the creation of highly scalable multitenant segments, using a 24-bit identifier to support millions of logical networks.

Common mistakes.

  • A. VXLAN is designed to overcome the 4096 VLAN limit, offering over 16 million segments through its 24-bit VNI, so it supports far more than 4096 VLANs.
  • C. VXLAN operates over an IP underlay network which typically uses Layer 3 routing protocols (like OSPF or EIGRP) for loop prevention and path selection, not STP.
  • D. VXLAN encapsulates Layer 2 Ethernet frames within a UDP header and an outer IP header, using the Layer 3 (IP) and Layer 4 (UDP) headers to transfer packets through the network underlay.

Concept tested. VXLAN characteristics and benefits

Reference. https://www.cisco.com/c/en/us/td/docs/switches/datacenter/nexus9000/sw/7-x/vxlan/configuration/guide/b_Cisco_Nexus_9000_Series_NX-OS_VXLAN_Configuration_Guide_7x/b_Cisco_Nexus_9000_Series_NX-OS_VXLAN_Configuration_Guide_7x_chapter_01.html

Topics

#VXLAN#network virtualization#multitenancy

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