Modern data center fabric architectures are moving to Layer 3. Many data centers are starting to push Layer 3 even further and ‘route on the host’ where they literally have BGP (Border Gateway Protocol) or OSPF (Open Shortest Path First) protocols running on their servers. Open Source routing applications like Quagga have helped enable this trend and allowed for all the advantages routing on the host provides. We will explore why running a layer 3 data center is beneficial — and why routing all the way to the host is starting to gain massive traction. We will discuss the design benefits of routing on the host along with a deployed use-case. We also provide a ‘rack-on-a-laptop’ demo that is fully automated that you can run on your own laptop with OpenStack and VirtualBox.