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> It's still an overlay network, just in hardware.

It really isn't, at least not in commonly understood sense. See [0] for example - you can use this with dual-stack and route everything natively even with ipv4 using rfc1918 cidrs. No ipip/gre/vxlan tunneling required. Does require setting up BGP peering on your routers.

[0] - https://cloudnativelabs.github.io/post/2017-05-22-kube-pod-n...




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