VXLAN routing forwards data packets between VXLAN-based virtual networks. By routing packets based on the VXLAN VNI (Virtual Network Identifier) rather than the traditional VLAN ID, it enables communication between virtual machines in different VXLAN segments.
Routing in VXLAN is about forwarding packets between different segments, terminating VXLAN packets, and forwarding the inner frame based on the IP address of the next hop. Routers can also translate VXLAN packets into other Layer 3 networks, like traditional VLANs, and route traffic between VXLAN segments.
With VXLAN routing, you can communicate between different VXLAN segments without bridging, and you can make your network more scalable. Also, it lets you use existing routing protocols and network infrastructure.