A method includes managing a virtual machine (VM) in a cloud extension, where the VM is part of a distributed virtual switch (DVS) of an enterprise network, abstracting an interface that is transparent to a cloud infrastructure of the cloud extension, and intercepting network traffic from the VM, where the VM can communicate securely with the enterprise network. The cloud extension comprises a nested VM container (NVC) that includes an emulator configured to enable abstracting the interface, and dual transmission control protocol/Internet Protocol stacks for supporting a first routing domain for communication with the cloud extension, and a second routing domain for communication with the enterprise network. The NVC may be agnostic with respect to operating systems running on the VM. The method further includes migrating the VM from the enterprise network to the cloud extension through suitable methods.