This project builds on the idea of emerging concept of Software Defined Networking (SDN) and Network Function Virtualization (NFV). The basic notion of SDN is separation of Data and Control plane whereas the NFV is to interchange dedicated network appliances with software running on servers. The main concept behind project V-NM is to replace the traditional network management by modern approach using the above mentioned techniques. OpenFlow protocol and OpenStack framework are used in the implementation of this project, which allows to manage SDN and NFV with great flexibility