Which of the following are benefits of using Overlay networks in modern data centers? (Choose two)

Overlay networks provide key benefits in modern data centers by creating virtual network isolation from the physical infrastructure, enabling multi-tenancy and segmentation without modifying physical devices. They also reduce underlay complexity by allowing it to provide simple IP connectivity while advanced services (routing, segmentation, policies) are implemented in the overlay layer.

A: Overlay networks add abstraction layers rather than simplifying physical configurations.

D: Overlays don't increase Layer 2 capacity; they typically encapsulate L2 traffic in L3.

- RFC 7348 "Virtual eXtensible Local Area Network (VXLAN)"

Section 1 (Introduction and Benefits)

- Juniper Networks Technical Documentation: "Data Center Switching" (MX Series)

Chapter on Overlay Networks

- IEEE 802.1Q-2018

Section on Provider Bridging and Network Virtualization

- "Software Defined Networks: A Comprehensive Approach" by Nadeau & Gray (2013)

Chapter 9

- IETF RFC 8926 "Geneve: Generic Network Virtualization Encapsulation"

Section 1.1 (Motivation)