What is a Virtual Network?

Last Modified: December 27, 2023

Table of Contents

Introduction

Virtual networks have gained popularity and significance in the field of computing and communication. They offer users the ability to create and manage networks that are independent of the physical infrastructure, such as routers, switches, cables, and servers. It can also isolate and segment traffic from different sources or destinations based on rules and policies. In this blog, we will discuss the virtual network, how it works, its types, and advantages.

Before getting into more details, let’s first understand a virtual network.

What is a Virtual Network?

A virtual network is a network that is created and controlled by software rather than relying on physical hardware. It allows various devices like computers, servers, routers, switches, and firewalls to communicate with each other as if they were directly connected by wires or cables. However, in reality, these devices are interconnected through virtual links that utilize the underlying physical network infrastructure.

A Physical Server containing 3 virtual machines connected to virtual switch and NIC which is further connected to a Physical Switch

A crucial element within a virtual network is the virtual network interface card (VNIC). VNIC works as a software simulation of a physical network interface card (NIC). It enables devices to connect with the virtual network. VNIC can effortlessly send and receive data packets over the network with the help of its own MAC address.

Another significant component of it is the machine (VM). It acts as a software emulation of a physical machine running an operating system along with applications. A VM can be equipped with one or multiple Virtual Network Interface Cards (VNICs), enabling it to establish communication with VMs or devices within the different virtual networks.

For a better understanding, let’s compare the physical network and virtual network.

Physical Network vs Virtual Network

Below we have compared both networks in a tabular form based on different factors.

Factors	Physical Network	Virtual Network
Hardware	Requires physical hardware such as cables, routers, switches, and servers	Requires minimal hardware such as a host server and a physical NIC
Software	Requires less software such as drivers and protocols	Requires more software such as vSwitch, network adapter, firewalls, and security
Connectivity	Connects computers and devices through cabling and other hardware	Connects computers and virtual machines through software and wireless technology
Management	Requires more manual configuration and maintenance of hardware	Requires more software-based configuration and management of network services
Flexibility	Less flexible and scalable as it depends on the availability of hardware resources	More flexible and scalable as it can create multiple virtual networks on a single physical network

Now that we have a basic understanding of these networks, let’s discuss how it works.

How Virtual Networking Works?

It operates by utilizing software to generate and oversee network packets, which are the data units that traverse a network. These packets are enclosed with information, like source and destination addresses, and are further directed by either software switches (vSwitch). These switches or routers can be devices or virtual devices running on a host computer.

The host computer, being a device, runs one or more VMs (Virtual Machines) and VNICs. It can also have NICs (Network Interface Cards) that connect it to other physical networks. To create and manage the VMs and VNICs, the host computer utilizes a software layer called a hypervisor. Acting as a bridge between networks and physical networks, the hypervisor allows communication between them.

Hypervisor is a layer of software that runs on top of the hardware. It oversees the VMs and their VNICs while also having the capability to create and manage switches. These switches serve as software devices connecting VNICs within a network.

Application 1,2, and 3 sending data towards x86 Environment having 3 virtual machines and a physical hardware sending towards hypervisor

The hypervisor has the capability to incorporate network functionalities, like firewall, load balancing, NAT, VPN, and more. These functionalities can be implemented as software modules that operate on the switches or routers.

Let’s discuss the different types of virtual networks in detail.

Types of Virtual Networks

There are different types of virtual networks depending on different purposes. Below, we have explained three types with examples.

Private Virtual Networks

These types of networks are mainly used by the devices that belong to them or have access to such types of networks. It creates a secure and isolated virtual environment in order to communicate or send sensitive data between applications. For example, an organization can use such types of networks in order to connect its different branches that are situated at different locations or sometimes to host its internal applications and databases.

Internal Virtual Networks

Now, the internal virtual networks are mainly for the devices that are part of the same server. It is used to divide as well as to organize the traffic and data. For example, an organization can use such type of network in the case when they want to separate their departments or teams. This will give them the opportunity to assign different permissions to different devices or users.

External Virtual Networks

An external virtual network is a type of network that is mainly accessible by users outside of a physical network. It is used to connect different networks or services over the internet. For example, an organization can use such types of networks in order to access cloud-based applications or maybe resources. Most of the time, companies use these networks to provide services to their customers or partners.

Advantages of Virtual Networks

It offers benefits for both users and network administrators, including:

Enhanced Security: By employing encryption authentication, isolation, and segmentation techniques, it safeguards data and devices from access or attacks.
Improved Performance: Utilizing optimization load balancing, caching, and compression techniques, it enhances the speed and quality of data transmission within the network.
Increased Productivity: Collaboration, mobility, automation, and innovation are enabled by a virtual network to enhance the efficiency and effectiveness of work processes.
Reduced Cost: By minimizing hardware usage, energy consumption, space requirements, and maintenance needs, it reduces both capital and operational expenses associated with the network infrastructure.

Frequently Asked Questions

Q1. What are the three types of virtual networks?

The three types of virtual networks are: Private, Internal, and External Virtual Networks.

Q2. What are virtual network devices?

Virtual network devices are mainly the software components that are utilized to emulate the functionality of physical network devices such as routers, switches, etc. One can also configure as well as manage them like real devices. These devices provide more functionalities and scalability than physical devices.

Q3. What are the uses of virtual network?

There are various uses associated with virtual networks. Some of these are:

Reducing cost: In the case of physical equipment, there is high usage of cables, hubs, and many other components that increase the overall cost. But in the case of this network, fewer components are required.
Centralized Access Control: One can easily access as well as manage these networks from a single device or computer.

Q4. What is a virtual network in cloud?

A virtual network in the cloud is a logical network that connects virtual machines and other resources in a cloud service provider’s data center.

Conclusion

In this blog, we have explained the virtual network in detail. We have also compared it with physical network. Apart from that, we have explained the workings of it along with its advantages.

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