(What are the application scenarios of the overlay network?

Huawei data center design documents clearly state that overlay networks (typically based on VXLAN EVPN) are highly versatile and support multiple application scenarios across modern and traditional environments.

In private cloud scenarios , overlay networks enable resource pooling and seamless data center interconnection, allowing flexible workload migration and multi-tenant isolation. For traditional IDC hosting services , overlays provide improved scalability and tenant isolation compared to VLAN-based designs, making them suitable for legacy-to-cloud evolution.

In public cloud environments (IaaS/PaaS/SaaS) , overlay networks are essential for large-scale multi-tenancy, enabling logical network segmentation, automation, and elastic service provisioning. Similarly, in NFV cloud scenarios , overlays integrate with SDN and NFV architectures to support virtualized network functions, service chaining, and dynamic service deployment.

Huawei CloudFabric emphasizes that overlay technology is not limited to a single use case but is a foundational technology across all modern data center architectures. Therefore, all listed options are valid application scenarios.