Techniques are disclosed for processing data packets and implementing policies in a software defined network (SDN) of a virtual computing environment. At least two SDN appliances are configured to disaggregate enforcement of policies of the SDN from hosts of the virtual computing environment. The hosts are implemented on servers communicatively coupled to network interfaces of the SDN appliance. The servers host a plurality of virtual machines. The servers are communicatively coupled to network interfaces of at least two top-of-rack switches (ToRs). The SDN appliance comprises a plurality of smart network interface cards (sNICs) configured to implement functionality of the SDN appliance. The sNICs have a floating network interface configured to provide a virtual port connection to an endpoint within a virtual network of the virtual computing environment.