#NSX #Concept
stands for Tunnel endpoint. Used on [[NSX - Transport Node.md|Transport Nodes]]|[[NSX - Transport Node]] as the endpoints for [[[[NSX - GENEVE]]|geneve]] encapsulated NSX traffic. This is only used for Overlay traffic, as VLAN-backed segments/ Transport Zones are routed in the external network environment.
Host Teps do not need to be on the same L2 network. Separate Networks can be beneficial by minimizing [[BUM Traffic|BUM]].