In August 2011, when NVGRE draft appeared mere days after VXLAN was launched, I dismissed it as “more of the same, different encapsulation, vague control plane”. Boy was I wrong … and pleasantly surprised when I figured out one of the major virtualization vendors actually did the right thing.
TL;DR Summary: Hyper-V Network Virtualization is a layer-3 virtual networking solution with centralized (orchestration system based) control plane. Its scaling properties are thus way better than VXLAN’s (or Nicira’s … unless they implemented L3 forwarding since the last time we spoke).
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