A router for use in a network includes a scalable architecture and performs methods for implementing quality of service on a logical unit behind a network port; and for implementing storage virtualization. The architecture includes a managing processor, a supervising processor; and a plurality of routing processors coupled to a fabric. The managing processor has an in-band link to a routing processor. A routing processor receives a frame from the network, determines by parsing the frame, the protocol and logical unit number, and routes the frame to a queue according to a traffic class associated with the logical unit number in routing information prepared for the processors. An arbitration scheme empties the queue in accordance with a deficit round robin technique. If a routing processor detects the frame's destination is a virtual entity, and so is part of a virtual transaction, the router conducts a nonvirtual transaction in concert with the virtual transaction. The nonvirtual transaction accomplishes the intent of the virtual transaction but operates on an actual network port, for example, a storage device.