A DHCP server is required in networks where client machines (physical/virtual) are not assigned a static IP address; in this case, they use the DHCP mechanism to retrieve an IP address from a server. NSX ESGs provide the ability to act as a DHCP server on your network. The NSX Edge can be configured with multiple IP pools with common DHCP attributes and can also be used to set up reservations on your network.
The following diagram depicts the logical topology for the DHCP ESG, with the distributed logical router providing DHCP relay services to forward DHCP queries to the ESG. In addition, it includes the parameters we will use to configure the DHCP pool on the NSX ESG: