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Each packet contains a header (the MAC header) containing the source and destination MAC address of the sending and receiving network interface. Each network interface card (physical or virtual) participating in a layer 2 network has a unique MAC address. To explain this, it is first necessary to recap how a switched Ethernet network works. One of the first challenges in scaling the cloud provider’s network comes at layer 2. Discussed below are the issues service providers face with Layer 2. To overcome cloud networking scalability challenges as outlined in a previous blog post, cloud service providers look to solutions like Layer 2, VLANs and Layer 3. Posted on 22nd January 2015 by Alex Bligh