An Internet infrastructure with network devices and end point devices containing service module manager and service modules, that supports packet analysis, encapsulation and vectoring, and interleaving applications. The network device that supports packet content analysis on arriving packet, consists of a plurality of packet switched interface circuitries, user interface circuitry, local storage comprising the service module manager software and a plurality of local service modules, and processing circuitry communicatively coupled to each of the packet switched interfaces, local storage and user interface circuit. The processing circuitry executes service module manager and thus analyzes the packet content and applies one or more selected local service module processing using the packet. The processing circuitry thus takes one or more actions on the packet. A packet switching exchange that supports packet content analysis, encapsulation and vectoring on arriving packet, consisting a plurality of interconnecting switches, a plurality of line cards, general primary processing card. A client device that supports packet content analysis on arriving packet containing a plurality of network interfaces, user interface circuitry, local storage and processing circuitry communicatively coupled to each of the network interfaces, local storage and user interface circuitry.