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The Compute node must have at least two network interfaces. One interface communicates with the controller node through the management network. The other node is used for the VM traffic on the data network. The VM receives its IP address from the DHCP agent on this network.

N/W Node: Runs Networking L2 agent, DHCP agent and L3 agent. This node has access to the external network. The DHCP agent allocates IP addresses to the VMs on data network. (Technically, the addresses are allocated by the Networking server, and distributed by the dhcp agent.) The node must have at least two network interfaces. One interface communicates with the controller node through the management network. The other interface is used as external network. GRE tunnels are set up as data networks.