After virtualization revamped the server business, the cloud now spills over to the network. This talk first reviews the vision of distributed cloud computing and network virtualization. Subsequently, two algorithmic challenges of this paradigm are discussed: (1) competitive access control and embeddings of virtual networks, and (2) competitive virtual service migration. We will formally present new models introduced by this paradigm, and we will sketch online algorithms and their competitive analysis. Finally, we will extend the discussion to security aspects and raise the question: Are adversarial virtual network embeddings a threat for ISPs?