Answer by game-on for I am running an Openstack Rocky with openvswitch agent and vxlan tenant networks. VMs are created in a vxlan network and have associated public floating IPs. For example, the following download test results in dramatic download speed difference: wget -O /dev/null http://www.ovh.net/files/100Mio.dat VM - 5MB/s Network node - 30MB/s I've noticed if I run download tests from my city/country, the download speed in the VM increases (looks like as far the server is / as many hops are in between, the download speed in the VM decreases). I've tried disabling the offloads using ethtool but no luck. I can't find a reasonable explanation about this.

Have you tried running an iperf test from the host and comparing that to a test from the VM? Check the MTU settings - you may need to reduce the MTU to 1450 or below on the VM.