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Overlay vs Underlay Networking: How They Work and Why They Matter

johny899

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Have you ever wondered how large networks manage to keep up with elasticity and speed? You may have heard of the terms overlay and underlay networking. While these terms may seem obscure at first, they actually do not have to be complicated if you take the time to break it down.

What is Underlay Networking?​

An underlay network is a physical network. The underlay is comprised of hardware that actually moves information from here to there.

• It is hardware: Everything is real and physical.

• It sends data: It is responsible for moving your information from one place to another.

Consider it like roads on which your data travels. Without roads, your cars (data) will not move. Without underlay, your data will not move.

What is Overlay Networking?​

An overlay network is a virtual network that exists on top of your underlay. Overlay networks are virtual, which means they are layer software and not hardware.

• It is software-based: It makes use of tools such as VXLAN or SD-WAN.

• It is flexible: You can create virtual networks that don't require the use of cables

For example, I used overlay networking in a lab to create networks for different projects in minutes without touching a single piece of wire. Overlay networks give you the speed and flexibility needed.

The Interaction between Underlay and Overlay Networks​

An overlay network cannot function without an underlay network. The underlay carries your data, while the overlay manages the destination of that data.

• Easy to scale: You can link networks in a variety of locations.

• Provides security: You can isolate different applications or users without additional hardware.

Large cloud providers like AWS and Azure utilize this combination (overlay & underlay) to securely and efficiently operate many virtual networks.

Conclusion​

Overlay and underlay networks are alternatives to roads and GPS systems. The underlay moves your data while the overlay decides how it is moved.

Now that you know this, networking is much simpler—and even enjoyable!
 
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