In network overlay, both endpoints of a VXLAN tunnel are physical switches.

In a network overlay, VXLAN (Virtual Extensible LAN) tunnels extend Layer 2 networks over a Layer 3 underlay, commonly implemented in Huawei’s data center solutions. The endpoints of a VXLAN tunnel are VXLAN Tunnel Endpoints (VTEPs), which encapsulate and decapsulate traffic.

VTEP Roles:VTEPs can be physical switches (e.g., Huawei CloudEngine series), virtual switches (e.g., Open vSwitch on a hypervisor), or routers with VXLAN support. The endpoints are defined by their IP addresses, not their physical nature.

Deployment Flexibility:In modern data centers, VXLAN tunnels often connect physical switches to virtualized environments where VTEPs reside on hypervisors or servers hosting VMs. For example, a VM’s vNIC might connect to a virtual switch (VTEP) that tunnels to a physical switch VTEP. Thus, both endpoints are not always physical switches; one or both can be virtual.

The statement isFALSE (B)because both endpoints of a VXLAN tunnel are not necessarily physical switches; they can include virtual VTEPs in hypervisors or other devices.References:Huawei HCIP-Data Center Network Training – VXLAN Overlay; CloudFabric VXLAN Deployment Guide.