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You can use VLAN for the connectivity between a VM and a server in the underlay network. It's very limited but can be useful if you need a connectivity between a VM and a physical machine or any other virtual machine which is not controlled by CORD-VTN and OpenStack. R-CORD uses this feature for vSG LAN connectivity.

The figure below is the part of the CORD-VTN pipeline, which shows how VLAN tagged packet is handled.

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