One possible solution for the company to continue adding new customers and to maintain the required level of isolation from other tenants is to implement VXLAN. VXLAN is a network virtualization technology that can extend VLAN by adding a 24-bit segment ID, which allows up to 16 million unique virtual segments. VXLAN can encapsulate layer 2 Ethernet frames within layer 3 IP packets, and tunnel them across the underlying network. VXLAN can provide logical isolation and security for different tenants, as well as scalability and flexibility for large cloud computing environments1.