A virtual routing appliance is a system for the rapid, automated management and employment of virtual networks. Virtual routing appliances utilize virtual machines to enable virtual infrastructure, and they have been used commonly in order to implement experimental networks and devoted subnets over a virtual network. Existing research in this area such as cluster-based virtual routers, and Xen routers require the use of physical resources to establish connectivity and to guarantee efficient resource utilization. The virtual routing appliance uses dynamic routing protocols such as RIP, and OSPF to forward traffic between different subnets and manage IP packets at the IP layer. The virtual routing appliance permits rapidly deployable virtual infrastructure, which is helpful for installing isolated infrastructure for restricted purposes, and which is also vital to the deployment of both network and application services. This research is a self-sufficient initiative to evaluate the feasibility of setting up virtual routing appliances in a virtual environment. A virtual routing appliance can convey about substantial cost benefits to organizations, especially educational institutions with limited use of physical resources.