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Virtual networking is a technology that facilitates data communication between two or more virtual machines (VM). It is similar to traditional computer networking but provides interconnection between VMs, virtual servers and other related components in a virtualized computing environment.
Virtual networking is based on physical computer networking principles, but its functions are mostly software-driven. In a virtual networking environment, each VM is assigned a software-based virtual Ethernet card with separate media access control (MAC) and IP addresses. The VMs communicate by addressing the specified IP address of each destination VM. Similarly, a virtual local area network(VLAN) is created through software-based virtual switches that provide network communication between all virtual and connected machines.
Virtual networking also may be implemented on VMs that are installed or deployed on network/Internet-enabled physical servers or PCs.