PROCESSING OF OVERLAY NETWORKS USING AN ACCELERATED NETWORK INTERFACE CARD

According to one embodiment, a system includes an accelerated network interface card (NIC), the accelerated NIC including a plurality of network ports including multiple Peripheral Component Interconnect express (PCIe) ports, an Overlay Network Offload System (ONOS), the ONOS including logic configured to provide overlay functionality to network traffic received by the accelerated NIC, and logic configured to cause network traffic that has overlay functionality provided by a hypervisor to bypass the ONOS. In another embodiment, a method for accelerating overlay functionality in a server includes providing overlay functionality for at least some network traffic received by an accelerated NIC implemented in a server, wherein the accelerated NIC provides an interface between the server and a network, and causing network traffic that has overlay functionality provided by a hypervisor of the server to bypass the accelerated NIC.