Is "hardware encapsulator" just a fancy way of saying they're using tunnel interfaces on the routers, or is a "hardware encapsulator" an actual thing?
Is "hardware encapsulator" just a fancy way of saying they're using tunnel interfaces on the routers, or is a "hardware encapsulator" an actual thing?
They're doing basically what Google is, but with off the shelf hardware and a openly-buyable NOS.
No.
Edit: expanding on this a little, it's not something that's been released so we can't talk about it. I don't think I can comment on "illumin8"s proposals other than to say that I'm pretty sure they don't work here.
This is the standard way of distributing traffic in large datacenters. That way you get extremely fast, non-blocking line rate between any two physical hosts in the datacenter, and since the physical hosts know which VMs/containers are running on them, they can pass the traffic directly to the other host if VMs exist in the same L2 network, and even do virtual routing if the VMs exist across L3 boundaries - still a single east/west hop.
In a regular IP Fabric environment we would all this device a VTEP.