With the development of data centers, a large number of services are deployed on virtual...

This statement is true. Traditional VLANs use a 12-bit VLAN ID, which means that only about 4094 usable VLANs are available. In modern data centers, especially in cloud and virtualization environments, that scale is often insufficient because a very large number of tenants, services, and virtual machines need isolated network segments.

VXLAN addresses this limitation by introducing the VNI (VXLAN Network Identifier), which is 24 bits long. This allows support for up to about 16 million logical segments, greatly expanding the number of isolated Layer 2 networks that can be created across an IP underlay. Because of this, VXLAN is widely used in modern data centers to provide scalable tenant isolation, flexible service deployment, and large Layer 2 extension across physical boundaries. HCIA-Datacom highlights VXLAN as a key overlay technology that solves the VLAN scale problem in virtualized data center environments. It allows a much larger number of VMs and tenants to be isolated than traditional VLAN-based solutions can support, making it essential for modern cloud-oriented and large-scale data center networking.