One of the major areas in networking is network virtualization. More and more appliances / brands coming with virtualization capability. It’s helpful for the organisation different ways. Reducing capital expenditure, operational expenditure, scalability, and availability.

There are two forms of network virtualization, external and internal. External virtualization generally combines multiple networks — or parts of networks — into a single virtual entity. Internal virtualization provides system-wide sharing and other network functionality to the software containers, which act as hosting environments for the software components of the network, on a single physical system. The external variety is the most commonly used method to create virtual networks. Vendors that distribute these virtualization tools generally offer either one form or another

Cisco Network Virtualization Solutions