Systems and methods for creating and using a hybrid system include determining, by a capacity allocation system associated with a virtual computing system, capacity of a reserve portion and capacity of an allocation portion of a first site based upon a probability of failure associated with a plurality of second sites. The systems and methods also include allocating, by the capacity allocation system, the capacity of the allocation portion among the plurality of second sites for operating a portion of the plurality of second sites from the first site, determining, by the capacity allocation system, that a number of failures at the plurality of second sites exceeds a first pre-determined threshold, and dynamically adjusting, by the capacity allocation system, the capacity of the reserve portion and the capacity of the allocation portion of the first site based upon the number of the failures.