Reducing the energy consumption of cloud data centers remains an important issue when considering scheduling, delaying and migrating cloud workloads. You can refer to this article for an overview of the problem:
Generally, VM allocation have the following issues:
1. Security issues/risks especially at the Hypervisor layer
2. Quality of service considerations.
3. Bin packing problem whcih can be solve using a good optimization algorithm
4. Resource cost under RTT requirements; hence the need for optimization
Uma, please, note that in Type 1 virtualization domain, before VM allocation, an attacker can use hypervisor services (such as create/delete, clone and migrate) to execute and extend a threat. In fact, Rootkits constitutes a destructive means of hypervisor attack. Once the Hypervisor is compromised, a malicious attacker can freely attack each VMs on a virtual host. It is very important to consider security vulnerability while engaging VM allocation.