Laine Stump 013427e6e7 network driver: don't send default route to clients on isolated networks
Normally dnsmasq will send a default route (the address of the host in
the network definition) to any client requesting an address via
DHCP. On an isolated network this makes no sense, as we have iptables
to prevent any traffic going out via that interface, so anything sent
that way would be dropped anyway.

This extra/unusable default route becomes problematic if you have
setup a guest with multiple network interfaces, with one connected to
an isolated network and another that provides connectivity to the
outside (example - one interface directly connecting to a physical
interface via macvtap, with a second connected to an isolated network
so that the host and guest can communicate (macvtap doesn't support
guest<->host communication without an external switch that supports
vepa, or reflecting all traffic back)). In this case, if the guest
chooses the default route of the isolated network, the guest will not
be able to get network traffic beyond the host.

To prevent dnsmasq from sending a default route, you can tell it to
send 0 bytes of data for the default route option (option number 3)
with --dhcp-option=3 (normally the data to send for the option would
follow the option number; no extra data means "don't send this option").

I have checked on RHEL5 (a good representative of the oldest supported
libvirt platforms) and its version of dnsmasq (2.45) does support
--dhcp-option, so this shouldn't create any compatibility problems.
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         LibVirt : simple API for virtualization

  Libvirt is a C toolkit to interact with the virtualization capabilities
of recent versions of Linux (and other OSes). It is free software
available under the GNU Lesser General Public License. Virtualization of
the Linux Operating System means the ability to run multiple instances of
Operating Systems concurrently on a single hardware system where the basic
resources are driven by a Linux instance. The library aim at providing
long term stable C API initially for the Xen paravirtualization but
should be able to integrate other virtualization mechanisms if needed.

Daniel Veillard <veillard@redhat.com>
Description
Libvirt provides a portable, long term stable C API for managing the virtualization technologies provided by many operating systems. It includes support for QEMU, KVM, Xen, LXC, bhyve, Virtuozzo, VMware vCenter and ESX, VMware Desktop, Hyper-V, VirtualBox and the POWER Hypervisor.
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