Overlay Transport Virtualization (OTV) is a Cisco proprietary Layer 2 VPN technology that extends VLANs across geographically dispersed data centers, enabling seamless data center interconnection. It overcomes the limitations of traditional solutions like VLAN extension by using MAC address encapsulation and IS-IS as a control plane for MAC address learning and distribution, thus preventing flooding across the WAN. OTV is commonly used for data center migration, business continuity/disaster recovery, and active/active data center setups.
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