In one embodiment, a networking device in a local area network (LAN) receives an instruction from a server to form a virtual network overlay in the LAN that redirects traffic associated with a particular node in the LAN to the server for analysis. The networking device establishes the virtual network overlay in the LAN to redirect traffic associated with the particular node to the server. The networking device determines that at least a portion of the traffic associated with the particular node should be processed locally within the LAN and not via redirection to the server and adjusts the virtual network overlay to process the at least a portion of the traffic associated with the particular node locally within the LAN and not via redirection to the server.