Disclosed is a system and method of providing transport-level identification and isolation of container traffic. The method includes assigning, by a software-defined-network (SDN) controller in an SDN-enable cloud environment, a service-ID to a service, a tenant-ID to a tenant and/or workload-ID to yield universal cloud classification details, and extracting, from a data flow, the universal cloud classification details. The method includes receiving a policy, generating flow rules based on the policy and universal cloud classification details, and transmitting the flow rules to an openflow application to confine packet forwarding decisions for the data flow.