A company is extending a subnet from their on-premises environment to an NC2 cluster on Azure. The company is considering using either a Virtual Tunnel End Point (VTEP) or a layer 2 subnet Extension over VPN. In which two scenarios would it be advantageous to use VTEP for this requirement? (Choose two.)

Nutanix Flow Networking's VTEP feature creates an unencrypted Layer 2 tunnel over a Layer 3 network. Therefore, it is advantageous when the underlying connectivity, such as an ExpressRoute with MACsec or a site-to-site VPN, already provides encryption (A). This avoids redundant encryption overhead. A key architectural advantage of VTEP is its ability to create a multipoint-to-multipoint Layer 2 network. This makes it superior to traditional point-to-point VPNs when multiple remote sites or Availability Zones need to be connected to the same extended Layer 2 subnet (D).

B. Only one remote Availability Zone exists that needs the subnet extended: This scenario can be handled by simpler point-to-point solutions; VTEP's multipoint capability is not an advantage here.
C. Connectivity between sites already does not provided encryption: This is a disadvantage for VTEP, as the traffic would be sent unencrypted, requiring a separate solution like a VPN to secure the data in transit.

1. Nutanix Flow Networking Guide v6.7, Section: "Layer 2 Virtual Subnet Extension," Subsection: "VTEP Gateway for Subnet Extension." The guide explains that VTEP tunnels are unencrypted and describes the architecture for connecting multiple sites, highlighting its multipoint capabilities.

2. Nutanix University, Course: "Nutanix Hybrid Cloud Fundamentals," Module: "Flow Networking." The courseware details the use cases for VTEP, emphasizing its utility in multipoint L2 extension scenarios and its reliance on underlying network security.