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All the cloud networks are software (defined network) a very long way down, far below what is exposed to customers, so any overlay is going to have to be software.

If you mean overlays that don't require an endpoint agent there are plenty of solutions that will orchestrate cloud native SDN control enforcement capabilities like AWS network ACLs or Azure NSGs rather then trying to handle enforcement on the resource directly with an agent.

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I appreciate the response but I think you misunderstood my question. OP mentioned a "software-only, zero implicit trust overlay network". In my head all overlay networks are software only (and from your answer your conception too). I was trying to figure out why OP mentioned "software only"? Was it redundant or was it a useful way to distinguish between another category of overlay network.

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