Inter-VNI communication using NSX requires a routing component such as DLR or ESG. This allows routing between IP subnets to be done in the logical space without using the physical router. The DLR provides distributed routing functionality using hypervisor kernel modules and is an optimal solution for routing east-west traffic.
However, due to feature limitations in the current NSX release (at the time of writing this book), the logical switch that is bridged through the hardware VTEP cannot use DLR functionality for routing. As an alternative, east-west routing can be performed on NSX Edge ESG or a physical router.
