The SD-Access overlay should reduce subnet sprawl and avoid overlapping IP subnets unless there is a specific operational requirement. Cisco SD-Access creates overlay virtual networks over an IP underlay and uses anycast gateway, VXLAN encapsulation, LISP control-plane mapping, and policy constructs to simplify endpoint mobility and segmentation. Reducing the number of subnets simplifies DHCP scope management, default-gateway placement, and operational troubleshooting. Avoiding overlapping address space across overlay networks is also a practical design recommendation because overlapping subnets complicate shared services, fusion routing, security logging, and policy troubleshooting. LAN automation and a dedicated IGP process are underlay deployment considerations, not overlay design choices. Layer 3 to the access design is also associated with routed underlay and campus fabric transport, not the overlay segmentation model. A clean overlay design should define virtual networks, scalable groups, IP pools, shared-services reachability, and external connectivity before deployment. Reference topics: Cisco SD-Access overlay design, anycast gateway, virtual networks, DHCP simplification, overlapping subnet avoidance.