In a VXLAN routing setup using VXLAN Controller Service (VCS), this feature will enable the following on a switch that is running as a VCS client.

In the traditional data center design, inter-subnet forwarding is provided by a centralized router, where traffic traverses across the network to a centralized routing node and back again to its final destination. In a large multi-tenant data center environment this operational model can lead to inefficient use of bandwidth and sub-optimal forwarding.