I'd like to CLOSE/WONTFIX this bug for RHOS 3.0. The main motivation for stripping the VLAN tags in tunnel payloads was to work around the performance issue whose root cause was bug 997632, which has since been fixed. Therefore, fixing this bug will not result in any further significant performance improvement.
Bug 1007158 addresses this same issue for RHOS 4.0, and is fixed. The openvswitch-agent's OVS flow rules have been reworked upstream in havana so that the VLAN tags are stripped. This involves substantial code and behavioural changes that are not practical to back-port to RHOS 3.0. Simpler possbile fixes for RHOS 3.0 have been tried, but result in all traffic being flooded to all tunnel endpoints, which would seriously limit scalability and performance.
Are there any objections to closing this?
Created attachment 810180 [details] Fix from upstream