There are two options for enabling communication between a VSM and a VEM: layer 2 and layer 3 (L2/L3). This is known as the software virtual switch (SVS) mode.
Communication between VSM and VEM
Using layer 2 connectivity
If the VSM and VEM are in the same layer 2 domain, the best way to connect them is to use the layer 2 connectivity mode, which can be done through the following command line:
Nexus1000v(config-svs-domain)# svs mode L2
Using layer 3 connectivity
If the VSM and the VEM are in different layer 2 domains, the layer 3 connectivity mode should be used. This can be achieved through the following command...