There exist two types of virtual routers today: hardware-based virtual router (HVR) and software-based virtual router (SVR). HVR typically refers to multiple virtual routers that share the same physical chassis and some common supporting resources, such as power supply, cooling, management port, switching fabric, and so on. SVR typically refers to multiple virtual routers that share all the physical resources available in the physical router. However, Cloud Computing is enabling new applications that were unthinkable just a few years ago. Some of these applications may require constant migration of the Virtual Machines (VM) that are dedicated to their support. The current invention provides a method to form virtual network to support applications that may be constantly mutated to best match the moving entities, i.e., the pattern of active users and locations of VMs.