The systems and methods disclosed herein provide for coalescing data packets into jumbo frames in order to maximize the throughputs inside the service provider Local Area Network (LAN), thereby increasing the amount of traffic forwarded between internal services. The systems and methods outlined herein enable a source service on a LAN to receive a plurality of data packets from a public cloud-based network (e.g., the Internet) having a packet size limit less than the MTU limit of the LAN, and coalesce the plurality of data packets into a jumbo frame having a size based on the MTU limit of the LAN. The jumbo frame is then transmitted over the LAN to a destination service on the LAN. The destination service then separates the jumbo frame back into the plurality of data packets for further transmission back to the public cloud-based network.