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Server and Uplink Ports on the Fabric Interconnect  
Each fabric interconnect has a set of ports in a fixed port module that you can configure as either server ports or uplink Ethernet ports. These ports are not reserved. They cannot be used by a Cisco UCS instance until you configure them. You can add expansion modules to increase the number of uplink ports on the fabric interconnect or to add uplink Fibre Channel ports to the fabric interconnect.   
You need to create LAN pin groups and SAN pin groups to pin traffic from servers to an uplink port. 
Each fabric interconnect can include the following types of ports:  
Server Ports 
Server ports handle data traffic between the fabric interconnect and the adapter cards on the servers. You can only configure server ports on the fixed port module. Expansion modules do not include server ports. 
Uplink Ethernet Ports 
Uplink Ethernet ports handle Ethernet traffic between the fabric interconnect and the next layer of the network. All network-bound Ethernet traffic is pinned to one of these ports. By default, Ethernet ports are unconfigured. However, you can configure them to function in the following ways:  
✑ Server 
✑ 
Uplink 
✑ FCoE 
✑ Appliance 
You can configure uplink Ethernet ports on either the fixed module or an expansion module.  
Uplink Fibre Channel Ports 
Uplink Fibre Channel ports handle FCoE traffic between the fabric interconnect and the next layer of the network. All network-bound FCoE traffic is pinned to one of these ports.  By default, Fibre Channel ports are uplink. However, you can configure them to function as Fibre Channel storage ports. This is useful in cases where a Cisco UCS requires a connection to a Direct-Attached Storage (DAS) device.  
You can only configure uplink Fibre Channel ports on an expansion module. The fixed module does not include uplink Fibre Channel ports. 
Reference: http://www.cisco.com/en/US/docs/unified_computing/ucs/sw/gui/config/guide/141/UCSM_GUI_Configuration_Guide_141_chapter5.html#task_A33D13CA58924EB1AD35EBA473B92625

Reference: http://www.cisco.com/c/en/us/td/docs/unified_computing/ucs/sw/gui/config/guide/2-2/b_UCSM_GUI_Configuration_Guide_2_2/configuring_upstream_disjoint_layer_2_networks.pdf

When server virtualization is implemented, the edge of the network is pushed from the traditional location in the network access layer, implemented in physical switches, to the virtual network access layer that is implemented in software in the server hypervisor. The Cisco Nexus 1000V Switch is an intelligent virtual network access layer switch that runs Cisco NX-OS Software, Cisco's data center operating system that runs on all Cisco data center products. Operating inside the Microsoft Hyper-V hypervisor, the Cisco Nexus 1000V supports Cisco Virtual Network Link (VN-Link) server virtualization technology to provide:  
Policy-based virtual machine connectivity  
Mobile virtual machine security and network policy  
Nondisruptive operating model for your server virtualization and networking teams When server virtualization is implemented in the data center, servers and virtual machines are not managed the same way as physical servers. Server virtualization is treated as a special deployment, leading to longer deployment time, with more coordination needed among server, network, storage, and security administrators. With the Cisco Nexus 1000V, you have a consistent networking feature set and configuration and provisioning model for both the physical and the virtual networks. Virtual machine networks can use the same network configuration, security policy, diagnostic tools, and operating models as physical server deployments that are connected to physical switches. This unified approach provides faster deployment and troubleshooting and makes the administration of virtualization environments essentially the same as for nonvirtualized deployments.  Developed in close collaboration with Microsoft, the Cisco Nexus 1000V Switch is certified by Microsoft and integrates with Microsoft Windows Server and Microsoft System Center Virtual Machine Manager (SCVMM). You can use the Cisco Nexus 1000V to manage your virtual machine connectivity with confidence in the integrity of the server virtualization infrastructure.   
Cisco Nexus 1000V Switch Components   
Cisco Nexus 1000V Switches have two main components:  
Virtual supervisor module (VSM)  
Virtual Ethernet module (VEM)  
The VSM provides the switch control and management plane, and the VEM provides the data plane for the switch (Figure 1). The VSM can run as a virtual machine on any Microsoft Hyper-V host or as a virtual service node on the Cisco Nexus 1010 and 1110. The VEM runs as a plug-in (extension) to the Microsoft Hyper-V switch in the hypervisor kernel, providing switching between virtual machines.   
Cisco Nexus 1000V sees the VSMs and VEMs as modules. In the current release, a single VSM can manage up to 64 VEMs. The VSMs are always associated with slot numbers 1 and 2 in the virtual chassis. The VEMs are sequentially assigned to slots 3 through 66 based on the order in which their respective hosts were added to the Cisco Nexus 1000V Switch.

Computers can connect to FCoE with converged network adapters (CNAs), which contain both Fibre Channel host bus adapter (HBA) and Ethernet Network Interface Card (NIC) functionality on the same adapter card. CNAs have one or more physical Ethernet ports. FCoE encapsulation can be done in software with a conventional Ethernet network interface card, however FCoE CNAs offload (from the CPU) the low level frame processing and SCSI protocol functions traditionally performed by Fibre Channel host bus adapters.