Because virtual networks are software constructs, the use of multiple separate virtual networks might offer extensive compartmentalization advantages not possible on traditional physical networks.

Because virtual networks (VPCs, VLANs, SDN microsegments) exist purely in software, administrators can spin up hundreds or thousands of isolated network segments without procuring physical switches or cabling. This enables compartmentalization at a scale and granularity that is economically and physically impractical on traditional hardware-based networks, allowing individual workloads, tenants, or environments to be completely isolated from one another.

False is incorrect because the software-defined nature of virtual networks is precisely what enables compartmentalization beyond physical hardware constraints.