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neutron/doc/source/devref/openvswitch_agent.rst

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OpenVSwitch L2 Agent

This Agent uses the OpenVSwitch virtual switch to create L2 connectivity for instances, along with bridges created in conjunction with OpenStack Nova for filtering.

ovs-neutron-agent can be configured to use two different networking technologies to create tenant isolation, either GRE tunnels or VLAN tags.

VLAN Tags

image

GRE Tunnels

GRE Tunneling is documented in depth in the Networking in too much detail by RedHat.

Further Reading