The present disclosure describes a method for cloud resource placement optimization. A resources monitor monitors state information associated with cloud resources and physical hosts in the federated cloud having a plurality of clouds managed by a plurality of cloud providers. A rebalance trigger triggers a rebalancing request to initiate cloud resource placement optimization based on one or more conditions. A cloud resource placement optimizer determines an optimized placement of cloud resources on physical hosts across the plurality of clouds in the federated cloud based on (1) costs including migration costs, (2) the state information, and (3) constraints, wherein each physical host is identified in the constraints-driven optimization solver by an identifier of a respective cloud provider and an identifier of the physical host. A migrations enforcer determines an ordered migration plan and transmits requests to place or migrate cloud resources according to the ordered migration plan.