Cisco has released a minor update to the Nexus 1000v. They have a video showing some new features. Most of them are security related, and are summarized below. It appears to me VDS is designed to interoperate with the vShields Zones technology in vSphere.
- Layer 3 control A VSM can be Layer 3 accessible and control hosts that reside in a separate Layer 2 network
- Virtual Service Domain (VSD) Virtual service domains (VSDs) allow you to classify and separate traffic for network services. Interfaces within a VSD are shielded by a service VM (SVM) that provides a specialized service like a firewall, deep packet inspection (application aware networking), or monitoring.
- iSCSI Multipath The iSCSI multipath feature sets up multiple routes between a server and its storage devices for maintaining a constant connection and balancing the traffic load.
- DHCP Snooping DHCP snooping acts like a firewall between untrusted hosts and trusted DHCP server.
- Dynamic ARP Inspection Dynamic ARP Inspection (DAI) validates ARP requests and response.
- MAC Pinning If one or more upstream switches do not support port channels, you can use MAC pinning to assign each Ethernet port member to a particular port channel subgroup.
- Static Pinning You can use vPC-HM to configure a port channel subgroup so that traffic is forwarded only through its member ports by assigning (or pinning) one of the following to the subgroup: vEthernet interface, the Control VLAN e Packet VLAN.
Update: Good information from Cisco here, including a PDF of the new features. VSM installation Guide is here. VEM installation guide is here. Cisco also has a host of new documentation for v1.2 you can find here (on the left side).