Each virtual Ethernet switch can be used in one of two operating modes, Virtual Ethernet Bridge Mode (VEB) or Virtual Ethernet Port Aggregator Mode (VEPA). The VEB mode is used by default.

With the Virtual Ethernet Bridge Mode, as shown in figure 7.2, LPARs within a managed system can communicate directly with one another via a virtual Ethernet switch. The network packets remain within the managed system. This results in low latency and high throughput.