Methods and systems for providing IP services in an integrated fashion are provided. According to one embodiment, a load associated with multiple virtual routing processing resources of an IP service generator of a virtual router (VR) based switch is monitored. Packets are load balanced among the virtual routing processing resources. A packet flow cache is maintained with packet flow entries containing information indicative of packet processing actions for established packet flows. Deep packet classification is performed to determine whether a packet is associated with an established packet flow. If so, the packet is directed to one of multiple virtual services processing resources representing application-tailored engines configured to provide network-based IP services including one or more of virtual private network (VPN) processing, firewall processing, Uniform Resource Locator (URL) filtering and anti-virus processing. If the packet is allowed, it is returned to the source virtual routing processing resource for forwarding.