A disclosed method and system for allocating bandwidth among a plurality of virtual network ports assigned to a plurality of virtual machines accesses assignment information indicating which virtual network ports are assigned to which virtual machines. A network bandwidth manager (NBM) receives network utilization information indicating the network utilization of each virtual network port/The NBM further receives virtual machine priority information indicative of a derived priority for each of the plurality of virtual machines. The NBM configures bandwidth parameters for each of the virtual network ports based on the assignment information, network utilization information, and the virtual machine priority information.