How to Create TEP IP Pool VMware NSX-T 3.2

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The Tunnel endpoint (TEP) enables Transport nodes to participate in an NSX-T overlay. The NSX-T overlay deploys a Layer 2 network on top of an existing Layer 3 network fabric by encapsulating frames inside packets and transferring the packets over an underlying transport network. The underlying transport network can be another Layer 2 network, or it can cross Layer 3 boundaries. The Tunnel Endpoint (TEP) is the connection point at which the encapsulation and decapsulation take place.

To provide a mechanism to transmit GENEVE overlay-backed traffic over the physical VLAN backed network, VMware NSX-T Data Center requires a tunnel end point (TEP) IP address pool. This pool is a range of IP addresses on the VMware NSX-T Data Center transport VLAN that are reserved for TEPs.

Each edge node VM requires one IP address from this pool, and each transport node requires two IP addresses also from this pool. When sizing the pool, consider the current and future requirements for TEPs.

Somethings to be aware of:

  • An IP pool is a container created for assigning IP addresses to tunnel endpoints (TEPs).
  • Each Transport Node has a tunnel endpoint (TEP). Each TEP requires an IP address. You can create one or more IP Pools to assign addresses to TEPs.
  • The TEP IP Pool does NOT necessarily need to be routable.  It is advantageous if you wish to span L3 networks, but not a requirement.
  • These IP addresses can be in the same subnet or in different subnets, depending on the IP Pools or DHCP configured for the transport nodes.
  • ESXi host TEP VMkernel ports are automatically created when you configure an ESXi host as a transport node
  • Compute TEP IP and Edge TEP IP must be in different vlan.

How to Create a TEP IP Pool:

Networking > IP Mgmt. > IP Address Pool

Add IP Pool

Here is where you will want to name the pool and provide a description for what this pool will service.

Click Set under Subnets to add in your IP Ranges/Block

Click Add Subnet

Provide the IP Range, CIDR and GW IP

Click add when done.

Confirm your information is correct then click apply


Wait for status to turn successful


Creating an IP pool is a simple process.  However, the design work and choosing the length of the IP’s is where the majority of the work is done.  Please plan wisely.

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