Creating a Virtual Network (VNET)
To separate resources, including switch ports, IP addresses, VLANs, and VXLANs, into separate management spaces, create a VNET and place the resources in the VNET. Then configure a separate VNET admin to manage the network.
Informational Note: You cannot create another VNET inside of a VNET.
There is no performance impact when you send network traffic through a VNET. Packets are switched in the hardware with full line-rate bandwidth and the same latency even if the packets are on a VNET or not. But, the VNET allows you to provide different Service Level Agreements (SLAs) to each VNET when there are multiple VNETs on a physical switch and there is resource contention based on traffic loads. See also: