A lot of engineers are concerned with what seems to be frivolous creation of new encapsulation formats supporting virtual networks. While STT makes technical sense (it allows soft switches to use existing NIC TCP offload functionality), it’s harder to figure out the benefits of VXLAN and NVGRE. Scott Lowe wrote a great blog post recently where he asked a very valid question: “Couldn’t we use MPLS over GRE or IP?” We could, but we wouldn’t gain anything by doing that.
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