OpenStack Networking addresses challenges of cloud networking like scaling VLANs and automating provisioning. It uses network virtualization with overlays and SDN. OpenStack Networking provides a generic API for virtual networks and plugins for different backends. It allows creation of virtual networks, ports, and attachment of VMs. Future versions will improve security, load balancing, and add new plugins and features while the community works on initiatives like modular L2/L3 and testing.