Network traffic between 2 VMs on the same vSwitch on the same ESX(i) host flows over the host hardware system bus and will not traverse the physical network. The processing of intra-vSwitch traffic is handled by CPU0 in the host. This is why it is possible for 2 VMs on the same vSwitch to communicate at greater than conventional speeds.
All of the above assumes there is no VLAN tagging involved.
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All of the above assumes there is no VLAN tagging involved.
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