VSM as VM in vSphere or inside Nexus 1010

Question

Hello all,
I have a question regarding the difference from VSM built inside a Virtual Machine in VMware versus the one inside Nexus 1010 in terms of communication with vCenter.
According to this:
http://www.cisco.com/en/US/docs/switches/datacenter/nexus1000/sw/4_0/troubleshooting/configuration/guide/trouble_17system.html
;Each VSM uses a unique extension key to communicate with vCenter Server and perform operations on a DVS.
Extension Key
The VSM uses the extension key when communicating with the vCenter Server. Each VSM has its own unique extension key, such as Cisco_Nexus_1000V_32943215
Use the show vmware vc extension-key command to find the extension key of the VSM. It is also listed in the .xml file.
The extension key registered on the vCenter Server can be found through the MOB.
The same extension key cannot be used to create more than one DVS on the vCenter Server.
Is this true also for a VSM hosted inside Nexus 1010?
Thank you!

Answer 1

Thanks for quick answer.
In this case I have some additional question. In case of a VSM in VM and the vCenter in the same switched area it was easy to maintain L2 connection.
In case of Nexus 1010 VSM I might have to deploy it in a different area, so the connection from the vCenter to Nexus 1010 VSM will be a L3 connection.
My point is, do I need to have mandatory L2 communication between VSM and vCenter or L3 will be also OK as long I have reachability. I read a dozen papers and I got a little bit confused. I remember that L3 would be just fine, but I want to confirm before starting to design.
Thanks!