Logical switching: NSX allows the ability to create L2 and L3 logical switching that allows workload isolation and the separation of IP address space between logical networks. NSX can create logical broadcast domains in the virtual space that prevent the need to create any logical networks on physical switches. This means you can are no longer limited to 4096 physical broadcast domains (VLANs).
This can be improved stating that the author wants to say, you can have as many vlans as you want beucase it is not limited by hardware.
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