System and methods for managing network packet forwarding with a controller

A network controlled by a controller may include end hosts that are coupled to the switches. The network may be coupled to gateways that interface between the network and an external network. The network may include subnetworks formed from respective portions of the end hosts of the network. The controller may create virtual gateways that interface between each of the subnetworks and the network by providing the end hosts of each subnetwork with virtual gateway Ethernet addresses. The controller may receive a network packet having a virtual gateway Ethernet address from an end host of a given subnetwork. The network packet may be destined for an end host of an external network or subnetwork. The controller may forward the network packet to the destination end host by redirecting the network packet through a selected gateway or by controlling the switches to perform gateway functions.