A multicast cloud controller (“MCC”) in a cloud system implements a process to manage multicast traffic in a cloud network. The MCC is coupled to at least one virtualized server for hosting one or more virtual machines (“VM”), wherein the virtualized server comprises at least one virtual switch (“VS”) that supports multiprotocol label switching (MPLS) and the virtual switch is coupled to a top of rack switch (“TORS”) that supports MPLS. MPLS is utilized to support multicast data traffic in the cloud system such that the system and method reduces state and is scalable.