The aboves are introductory video descriptions for Neutron, which is the OpenStack’s networking component. It’s demonstrated by VMWare engineers, and it’s interesting that VMWare is aggressively involving into the OpenStack community, though they have their own strong platforms. After the basic hypervisors became commodity, virtualize-focused companies seems pursuing different ways to gain the presence in the community.
According to the video, OpenStack’s computing engine (Nova) has basic flat-networking model based on VLAN on physical switches, but it has some limitations in the scalability. Then, Neutron extends the capability to software-based isolated virtual networks, and trying to resolve these issues (it provides agent and plugins to interface with OpenVSwitch).
VMWare is offering proprietary virtual networking like VMware NSX, but it’s exposing integration options with OpenStack, rather than facing into their product platforms. This kind of unification of interfaces would be nice directions for users.