> > If switches were to try to distribute GRE flows between two VTEPs
> > that used a GRE encapsulation, all the traffic would be directed to
> > use only one link within these Port Channels.
> 
> Not true. GRE encapsulation is not mandated to use the same src/dst
> addresses for all flows between given two end points.

True, but then you need a mechanism to discover all the available endpoints, 
whereas with single VTEP per host you can use existing mechanisms (either 
learning from source IP address or next-hop distribution with BGP-like 
protocols).

> You do not need to parse deep into packet to enable good load balancing
> hash across parallel links when you use GRE as an encapsulation
> technology.

True, but many existing DC switches that do IP-based load balancing have no 
problems load-balancing on UDP 5-tuple. I am positive there's equipment out 
there that can do load balancing on GRE keys (or some other part of GRE 
header), I just haven't encountered it yet (or realized it does that), so 
please fix my ignorance.

> And what is nice about IP encapsulation all GRE src/dst addresses can be
> naturally aggregated so from IGP point of view they still look like a
> single prefix.

... and you need a new endpoint prefix (or set-of-addresses) discovery 
mechanism.

Ivan

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