A method creates a virtual network dynamically, with automated configuration for the new virtual network to function. The virtual network creation is initiated by a network node sending a request for a virtual network to a network controller. The network controller services the request, creating the virtual network by automatically configuring at least one network switch in the physical network. The network controller automatically determines a configuration for the virtual network using virtual network information, and creates the virtual network by configuring network switches according to the configuration. The virtual network can be configured for particular applications. From a user's point of view, the user connects to a network node. The network node then initiates the creation of the virtual network transparently to the user. The resource-intensive manual configurations of the conventional approach in creating new virtual networks are thus avoided.