Abstract: Providing a hybrid virtual network, includes: receiving from a source VM, by a hypervisor of a first stack, a packet to be transmitted to a target VM within a virtual network includes multiple VMs spanning a multiple stacks, where each stack includes an aggregation of compute, storage, and network resources and separate stacks are coupled for data communications via a network level protocol; if the target VM is located in the first stack, overwriting a MAC address of in the packet with a replacement MAC address for transmission via a data link layer protocol and transmitting the packet with the data link layer protocol; and if the target VM is not located in the first stack, encapsulating the packet for tunneling via a network layer protocol and transmitting the encapsulated packet with the network layer protocol.