- Midonet is based on an IP overlay concept
- By implementing in IP encapsulation it can provide tenant isolation and more advance features
- By pushing the intelligence to the edge of the network (like hypervisors) it can handle the packet forwarding efficiently with out having to consult the with any external system
- All Midonet processes built a single logical distributed system within each single Midonet node is capable of finding and implementing the right action for a packet
- As an example if VM tries to communicate with a peer that doesn't belong to the tenant the verification can be done at the edge without having to sent the packet out
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