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Hi,

I'm continuing with testing ...

It seems this issue is related to virtio driver. Virtio driver is used by
default with the option use_virtio_for_bridges=true in nova-compute.conf,
if this option is disabled instances are created with a RTL-8139 network
interface and the bandwidth between it and its router appears to be as
expected without disabling TSO:

iperf -c 10.0.0.1
------------------------------------------------------------
Client connecting to 10.0.0.1, TCP port 5001
TCP window size: 23.5 KByte (default)
------------------------------------------------------------
[  3] local 10.0.0.19 port 51554 connected with 10.0.0.1 port 5001
[ ID] Interval       Transfer     Bandwidth
[  3]  0.0-10.0 sec   145 MBytes   121 Mbits/sec

On the other hand, bandwidth between instances running on the same compute
node is ~ 3 Gbits/sec with virtio driver.

More info:
- OVS: 2.3.0
- Linux kernel 3.16-3
- In-tree version of kernel openvswitch module

Cheers

Alberto
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