What it is
NSX virtualizes the network: switching, routing and firewalling run as software in the hypervisor rather than on dedicated hardware. The firewall sits at each VM’s virtual port.
Traffic between two VMs on the same host is filtered without ever leaving the host.
What it is for
Segmentation. The classic approach separates with VLANs and physical firewalls, and that works while the number of zones stays manageable. With a distributed firewall, which zone a VM belongs to becomes a property of the VM itself.
The second use case is automation: networks that come up with an application and disappear with it.
What to watch
NSX is part of VMware Cloud Foundation, and it is the component that holds migrations up. The reason is that nobody fully knows a rule set that has grown over time. Segmentation needs an honest answer to which systems talk to each other today.
