The following diagram shows how NSX fits into the architecture of Rackspace Private Cloud powered by VMware (RPC-VMware). The NSX Manager™ resides in the management resource pool. During the initial configuration of NSX, three NSX Controllers™ are deployed in the cluster. Continuing with the configuration process, VXLAN Tunnel Endpoints (VTEPs) are deployed on the hypervisor so the hypervisor itself can act as an endpoint to NSX. The VTEPs are deployed to a dedicated VLAN, and this VLAN is the base for the VXLAN overlay networks that are created and managed by NSX.