The recently released new version of VMware Cloud Director 10.4.1 brings quite a lot of new features. In this article I want to focus on those related to networking.
External Networks on Org VDC Gateway (NSX-T Tier-1 GW)
External networks that are NSX-T Segment backed (VLAN or overlay) can now be connected directly to Org VDC Edge Gateway and not routed through Tier-0 or VRF the Org VDC GW is connected to. This connection is done via the service interface (aka Centralize Service Port – CSP) on the service node of the Tier-1 GW that is backing the Org VDC Edge GW. The Org VDC Edge GW still needs a parent Tier-0/VRF (now called Provider Gateway) although it can be disconnected from it.
What are some of the use cases for such direct connection of the external network?
- routed connectivity via dedicated VLAN to tenant’s co-location physical servers
- transit connectivity across multiple Org VDC Edge Gateways to route between different Org VDCs
- service networks
- MPLS connectivity to direct connect while internet is accessible via shared provider gateway


The connection is configured by the system administrator. It can use only single subnet from which multiple IPs can be allocated to the Org VDC Edge GW. One is configured directly on the interface while the others are just routed through when used for NAT or other services.
If the external network is backed by VLAN segment, it can be connected to only one Org VDC Edge GW. This is due to a NSX-T limitation that a particular edge node can use VLAN segment only for single logical router instantiated on the edge node – and as VCD does not give you the ability to select particular edge nodes for instantiation of Org VDC Edge Tier-1 GWs it simply will not allow you to connect such external network to multiple Edge GWs. If you are sharing the Edge Cluster also with Tier-0 GWs make sure that they do not use the same VLAN for their uplinks too. Typically you would use VLAN for co-location or MPLS direct connect use case.
Overlay (Geneve) backed external network has no such limitations which makes it a great use case for connectivity across multiple GWs for transits or service networks.
NSX-T Tier-1 GW does not provide any dynamic routing capabilities, so routing to such network can be configured only via static routes. Also note that Tier-1 GW has default route (0.0.0.0/0) always pointing towards its parent Tier-0/VRF GW. Therefore if you want to set default route to the segment backed external network you need to use two more specific routes. For example:
0.0.0.0/1 next hop <MPLS router IP> scope <external network>
128.0.0.0/1 next hop <MPLS router IP> scope <external network>

Slightly related to this feature is the ability to scope gateway firewall rules to a particular interface. This is done via Applied To field:

You can select any CSP interface on the Tier-1 GW (used by the external network or non-distributed Org VDC networks) or nothing, which means the rule will be applied to uplink to Tier-0/VRF as well as to any CSP interface.
IP Spaces
IP Spaces is a big feature that will be delivered across multiple releases, where 10.4.1 is the first one. In short IP Spaces are new VCD object that allows managing individual IPs (floating IPs) and subnets (prefixes) independently across multiple networks/gateways. The main goal is to simplify the management of public IPs or prefixes for the provider as well as private subnets for the tenants, however additional benefits are being able to route on shared Provider Gateway (Tier-0/VRF), use same dedicated parent Tier-0/VRF for multiple Org VDC Edge GWs or the ability to re-connect Org VDC Edge GWs to a differeent parent Provider Gateway.
Use cases for IP Spaces:
- Self-service for request of IPs/prefixes
- routed public subnet for Org VDC network on shared Provider Gateway (DMZ use case, where VMs get public IPs with no NATing performed)
- IPv6 routed networks on a shared Provider Gateway
- tenant dedicated Provider Gateway used by multiple tenant Org VDC Edge Gateways
- simplified management of public IP addresses across multiple Provider Gateways (shared or dedicated) all connected to the same network (internet)
In the legacy way the system administrator would create subnets at the external network / provider gateway level and then add static IP pools from those subnet for VCD to use. IPs from those IP pools would be allocated to tenant Org VDC Edge Gateways. The IP Spaces mechanism creates standalone IP Spaces (which are collections of IP ranges (e.g. 192.168.111.128-192.168.111.255) and blocks of IP Prefixes(2 blocks of 192.168.111.0/28 – 192.168.111.0/28, 192.168.111.16/28 and 1 block of 192.168.111.32/27).

A particular IP Space is then assigned to a Provider Gateway (NSX-T Tier-0 or VRF GW) as IP Space Uplink:

An IP Space can be used by multiple Provider Gateways.
The tenant Org VDC Edge Gateway connected to such IP Space enabled provider gateway can then request floating IPs (from IP ranges)Â

or assign IP block to routable Org VDC network which results into route advertisement for such network.

In the above case such network should be also advertised to the internet, the parent Tier-0/VRF needs to have route advertisement manually configured (see below IP-SPACES-ROUTING policy) as VCD will not do so (contrary to NAT/LB/VPN case).

Note: The IP / IP Block assignments are done from the tenant UI. Tenant needs to have new rights added to see those features in the UI.

The number of IPs or prefixes the tenant can request is managed via quota system at the IP Space level. Note that the system administrator can always exceed the quota when doing the request on behalf of the tenant.
A provider gateway must be designated to be used for IP Spaces. So you cannot combine the legacy and IP Spaces method of managing IPs on the same provider gatway. There is currently no way of converting legacy provider gateway to the one IP Spaces enabled, but such functionality is planned for the future.

Tenant can create their own private IP Spaces which are used for their Org VDC Edge GWs (and routed Org VDC networks) implicitly enabled for IP Spaces. This simplifies the creation of new Org VDC networks where a unique prefix is automatically requested from the private IP Space. The uniqueness is important as it allows multiple Edge GWs to share same parent provider gateway.

Transparent Load Balancing
VMware Cloud Director 10.4.1 adds support for Avi (NSX ALB) Transparent Load Balancing. This allows the pool member to see the source IP of the client which might be needed for certain applications.
The actual implementation in NSX-T and Avi is fairly complicated and described in detail here:Â https://avinetworks.com/docs/latest/preserve-client-ip-nsxt-overlay/. This is due to the Avi service engine data path and the need to preserve the client source IP while routing the pool member return traffic back to the service engine node.
VCD will hide most of the complexity so that to actually enable the service three steps need to be taken:
- Transparent mode must be enabled at the Org VDC GW (Tier-1) level.

2. The pool members must be created via NSX-T Security Group (IP Set).

3. Preserve client IP must be configured on the virtual service.

Due to the data path implementation there are quite many restrictions when using the feature:
- Avi version must be at least 21.1.4
- the service engine group must be in A/S mode (legacy HA)
- the LB service engine subnet must have at least 8 IPs available (/28 subnet – 2 for engines, 5 floating IPs and 1 GW) – see Floating IP explanation below
- only in-line topology is supported. It means a client that is accessing the LB VIP and not going via T0 > T1 will not be able to access the VS
- only IPv4 is supported
- the pool members cannot be accessed via DNAT on the same port as the VS port
- transparent LB should not be combined with non-transparent LB on the same GW as it will cause health monitor to fail for non-transparent LB
- pool member NSX-T security group should not be reused for other VS on the same port
Floating IPs
When transparent load balancing is enabled the return traffic from the pool member cannot be sent directly to the client (source IP) but must go back to the service engine otherwise asymmetric routing happens and the traffic flows will be broken. This is implemented in NSX-T via N/S Service Insertion policy where the pool member (defined via security group) traffic is instead to its default GW redirected to the active engine with a floating IP. Floating IPs are from the service engine network subnet but are not from the DHCP range which assigns service engine nodes their primary IP. VCD will dedicate 5 IP from the LB Service network range for floating IPs. Note that multiple transparent VIPs on the same SEG/service network will share floating IP.