Overlay Network

Definition

An overlay network is a virtual network constructed on top of an existing physical network (the underlay). Overlay networks use software to create logical links and paths, independent of the underlying physical infrastructure. They are also sometimes called virtual networks or software-defined overlays.

How Overlay Networks Work

Overlay networks employ encapsulation techniques to wrap data packets within additional headers. These headers contain routing and addressing information for the virtual network. The underlying physical network simply treats these encapsulated packets as regular data, oblivious to the logical overlay topology.

Benefits of Overlay Networks

• Flexibility: Create customized network topologies without reconfiguring the physical infrastructure.
• Agility: Rapidly deploy new services or network segments on demand.
• Isolation: Segment traffic and enforce security policies at the virtual network level.
• Innovation: Enable new networking services and applications that would be difficult to implement on traditional networks.

Use Cases

• Cloud Networking: Provide secure multi-tenant connectivity and workload mobility within cloud environments.
• SD-WAN (Software-Defined Wide Area Networking): Optimize WAN traffic between branches, data centers, and cloud resources.
• Network Virtualization: Create multiple virtual networks on shared physical hardware.

Netrinos and Overlay Networks

Netrinos provides a private overlay network solution that eliminates configuration complexity for IT managers. This transparent overlay creates a unified, software-defined connectivity layer across diverse hardware, streamlining operations and accelerating service delivery.