The underlay network provides the physical infrastructure that transports data packets across routers and switches using physical links. It is responsible for forwarding packets based on standard routing protocols. The overlay network, in contrast, creates virtual network paths over the underlay for logical segmentation and advanced networking features. Managing network policies through a centralized controller pertains to the control plane, not the underlay network. Offering application-level services is beyond the scope of the underlay network's responsibilities.
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Cisco CCNA 200-301
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