Which technology allows an organization to encapsulate Layer 2 Ethernet frames inside Layer 3 UDP packets to build highly scalable, isolated multi-tenant data center networks?

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A IPSec in Tunnel Mode
B Generic Routing Encapsulation (GRE)
C VXLAN (Virtual Extensible LAN)
D VLAN Trunking (802.1Q)

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Answer: C. VXLAN (Virtual Extensible LAN)

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• Explanation: C) VXLAN is correct because it uses a 24-bit segment ID to scale beyond the traditional 4,096 VLAN limit by overlaying Layer 2 connections over Layer 3 networks.

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Which technology allows an organization to encapsulate Layer 2 Ethernet frames inside Layer 3 UDP packets to build highly scalable, isolated multi-tenant data center networks?

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