Systems, methods, and software for providing a virtualized communication networking environment are provided herein. In one example, a method includes identifying an Internet Protocol (IP) address for a network interface of a virtual machine based on at least a communication network indicator in a MAC address associated with the network interface of the virtual machine. If the virtual network element has not been generated for handling IP traffic associated with the network interface of the virtual machine, then generating the virtual network element and associating the virtual network element with the network interface of the virtual machine based on at least the communication network indicator in the MAC address. When the virtual network element has been generated, then configuring the virtual network element for the IP traffic associated with the network interface of the virtual machine based at least the communication network indicator in the MAC address.