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I was curious if this falls into the "why..." category or not. I have a dedicated, hardware UTM (Untangle) that's serving as an edge device with two hosts and a dozen guests behind it.

Right now, I have a few VLANs terminating at Untangle, so intervlan routing is handled by Untangle. Unfortunately, Untangle is becoming a bottleneck since it can't keep up with the traffic.

What I'd like to do is put up a pfSense guest on one host and have all guests use that as their gateway. That way I can have granular control of the traffic (firewall/IDS) while taking advantage of greater bandwith.

I know a layer 3 switch is designed for this, but I'd rather not incur additional costs.

Is this a dumb idea? Is there a better way to handle this by software (open vswitch or host ip tables)?

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After further research, it seems that the best solution is to use libvirt's built in network filters:

https://libvirt.org/formatnwfilter.html

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