Reference Architecture For Improved Scalability Of Virtual Data Center Resources

In an embodiment, a method for operating a data center includes interconnecting a hierarchy of networking devices comprising physical networking devices and virtual networking devices, such that physical networking devices are located at two or more higher levels in the hierarchy, and the virtual networking devices are located in at least one lower levels of the hierarchy. Virtual Local Area Networks (VLANs) are terminated only in physical networking devices located at the lowest of the two or more higher levels in the hierarchy.