A system and method for allocating resources in a cloud environment includes determining permitted usage of virtual machines and partitioning resources between network servers in accordance with a virtual hyperviser generated in accordance with an abstraction layer configured as an interface between a solution manager and an interface to a cloud network. Resource usage limits are determined for each virtual machine associated with the virtual hyperviser, and the servers are analyzed through the virtual hypervisers to determine if the virtual machines need to be migrated. If reallocation is needed, virtual machine migration requests are issued to migrate virtual machines into a new configuration at the virtual hypervisor abstraction level. The servers are reanalyzed to determine if migration of the new configuration is needed. Shares are computed to enforce balance requirements, and virtual machine shares and limits are adjusted for resources according to the computed shares.