The present Dynamic Software Defined Networking (DSDN) systems and methods provide secure and isolated subnetworks within a larger network wherein each subnetwork may be formed with varied policies and communication restrictions based on at least device type, device grouping, and risk level. The present DSDN system and method may also be applied to form a network, with or without subnetworks, of devices that are spatially separated, thereby reducing the attack surface of the DSDN formed network.