What a pita this has been, the process is reasonably straight forward but trying to do this in a nested environment is a pain!! The settings below should be done of both ESGs (in my (hands on) lab I created two ESGs with a directly connected “Internal” Logical Switch and an “Internet” Logical Switch and used a DLR to act as the Internet Router.
Something like this:
10.10.100.0/24 >Site 1 ESG Internal (10.10.100.1) > Site 1 ESG Internet (10.10.10.1) > Internet DLR (10.10.10.254) > Internet DLR (20.20.20.254) > Site 2 ESG Internet (20.20.20.1) > Site 2 ESG Internal (20.20.200.1) > 20.20.200.0/24
Enable IPSec VPN Service
You must enable the IPSec VPN service for traffic to flow from the local subnet to the peer subnet
1. Log in to the vSphere Web Client.
2. Click Networking & Security and then click NSX Edges.
3. Double-click an NSX Edge.
4. Click the Manage tab and then click the VPN tab.
5. Click IPSec VPN.