Network Virtualization enables the logical grouping of physical networks to use them as virtual networks. These are governed by the software system that creates a network overlay to separately run the virtual network layers right on the top of the same physical network fabric. The tools required for network virtualization involve a hypervisor and physical switch OS. The former uses third-party software or in-built networking, while the latter uses network virtualization functionality. Such grouping helps restrict the management traffic while allowing communication between the nodes within a virtual network.
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