A sense of location is provided for distributed virtual switch components into the service provisioning scheme to reduce latency observed in conducting policy evaluations across a network in a hybrid cloud environment. A management application in a first virtual network subscribes to virtual network services provided by a first virtual service node in the first virtual network. A second virtual network receives the subscription to the virtual network services and starts a virtual switch that switches network traffic for one or more virtual machines in the second virtual network that are configured to extend services provided by the first virtual network into the second virtual network. The second virtual network starts a second virtual service node in the second virtual network that provides network traffic services for the one or more virtual machines.