VMware NSX Cookbook
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IP address for VTEP VMkernel

In a single VTEP deployment, you will have one VTEP VMkernel IP address per ESXi host. In multi-VTEP deployments, the number of VTEP IPs will match the number of vDS uplinks. For example, with two vDS uplinks there will be two VTEP IPs per host. At the time of writing this book, the maximum numbers of vSphere hosts in a vSphere cluster running NSX is 64. If you are going to have a maximum of 32 ESXi hosts per cluster, each with two VTEP IPs, up to 64 IPs are required per cluster. You can create one IP pool per vSphere cluster for easier IP management and additional IP pools can be created on demand when there is a new vSphere cluster to be added. Make sure you have enough IPs to accommodate current and future requirements, as fixing this can be a challenge if you are running out of IPs.