The present disclosure relates a network, a network element, a system, and a method providing an efficient allocation of protection capacity for network connections and/or services. These may be for services within a given Virtual Private Network (VPN) or Virtual Machine (VM) instance flow. Network ingress/egress ports are designed to be VM instance aware while transit ports may or may not be depending on network element capability or configuration. A centralized policy management and a distributed control plane are used to discover and allocate resources to and among the VPNs or VM instances. Algorithms for efficient allocation and release of protection capacity may be coordinated between the centralized policy management and the distributed control plane. Additional coupling of attributes such as latency may provide more sophisticated path selection algorithms including efficient sharing of protection capacity.