In one example, a system is described which includes an underlay network including a mapping server and a mapping database, an overlay network including VTEPs, at least one peripheral device, and at least one client device connected to the at least one peripheral device via the VTEPs. Further, each VTEP includes a traffic optimization module. A first VTEP receives a first service advertisement from a first peripheral device offering the first service and registers service advertisement information with the mapping database, a second VTEP connected to a first client device queries the mapping database to discover the first peripheral device via a unicast message, retrieves the service advertisement information from the mapping database upon a successful query, and sends the retrieved service advertisement information to the first client device, and the first client device selects the first peripheral device offering the first service using the service advertisement information.