When a virtual machine is created, the placement engine puts it in a provider virtual data center resource pool that best fits the requirements of the virtual machine. A sub-resource pool is created for this organization virtual data center under the provider virtual data center resource pool, and the virtual machine is placed under that sub-resource pool.

When the virtual machine powers on, the placement engine checks the provider virtual data center resource pool to confirm that it still can power on the virtual machine. If not, the placement engine moves the virtual machine to a provider VDC resource pool with sufficient resources to run the virtual machine. A sub-resource pool for the organization virtual datacenter is created if one does not already exist. If the movement requires transfer of virtual machine files, NFC protocol transfer over management network or provisioning network is used.