[en] Embodiments of the invention include a method performed by a cloud network manager flow entries in a cloud network. The CNM is coupled to virtualized servers for hosting virtual machines ("VM") that each comprise a virtual switch coupled to a top of rack switch ("TORS"). The CNM receives notification messages that indicate virtual machines have been scheduled for activation on virtualized servers. The CNM determines a VM media access control ("MAC") address associated with the VM and a virtual switch MAC address associated with that virtualized server's virtual switch. The CNM records an association between the VM MAC address and the virtual switch MAC address. The CNM further determines a label that associates the TORS with the virtual switch. The CNM sends a modifies flow entries in the virtual switch to indicate data packets matching the MPLS label and the VM MAC address should be forwarded to the VM.