This document proposes PacketCloud, an open platform for hosting elastic in-network services. PacketCloud uses cloudlets located at ISP network edges to provide virtual instances for third-party services. These services can be user-requested or transparently intercept traffic. A prototype demonstrates services like encryption achieving over 500Mbps on one node and over 10Gbps across 20 nodes in a cloudlet with minimal delay. The platform aims to efficiently share network resources while providing economic rewards for ISPs and third parties.