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by wmf 2654 days ago
Yes, a subnet per rack is a best practice. Often people DHCP & PXE over the 1G out-of-band network which is dumb L2.

In most ASICs everything is the same latency since packets go through the whole pipeline whether they use all the functionality or not. Anyway, the latency of plain routing would have to be equal or faster than VXLAN encap + routing.