A system and method can use statistical modeling of the way that an entire application environment is running. The output from the statistical models can be used by an optimization engine to provide an optimal or near optimal configuration and operation of the application environment for nearly any workloads and conditions. After constructing the statistical models, the operation can be entirely automated and not require human intervention. In another embodiment, some human intervention may be used or desired, particularly for non-reoccurring events (e.g., significant portion of a network for the application environment shut down due to a natural disaster). The system and method can be used to respond faster (closer to real time) and potentially to implement better control than would otherwise be possible with manual control. The system and method is particularly well suited for application environments that are in a nearly constant state of flux.