In general, the invention relates to a method for migrating virtual machines. The method includes obtaining migration criteria for a first virtual machine (VM) where the migration criteria is a bandwidth constraint for the first VM. The method further includes sending a request comprising the migration criteria to a second computer in the chassis, receiving a response to request from the second computer, where response indicates that the second computer can satisfy the migration criteria. The method further includes suspending execution of the first VM on the first computer and obtaining information to migrate the first VM, migrating the first VM and a first VNIC associated with the first VM, updating a virtual switching table in the chassis to reflect the migration of the first VM; and resuming execution of the first VM on the second computer.