Abstract: A system for balancing network traffic among virtual machines includes a first virtual machine executed by a first physical server connected to a physical network and a second virtual machine executed by a second physical server connected to the physical network. A gateway device is configured to route network traffic through the physical network to and from the first and second virtual machines. A load balancer module is executed by the gateway device. The load balancer module is configured to: at least partially decode the network traffic to identify a destination address of the network traffic; determine if the destination address is the address of a load-balanced virtual machine; and if the destination address is the address of a load-balanced virtual machine, route the network traffic to a destination virtual machine according to a load-balancing scheme.