The present disclosure describes, among other things, a method for optimizing task scheduling in an optimally placed virtualized cluster using network cost optimizations. The method comprises computing a first network cost matrix for a plurality of available physical nodes, determining a first solution to a first optimization problem of virtual machine placement onto the plurality of available physical nodes based on the first network cost matrix, wherein the first solution comprises one or more optimally placed virtual machines, computing a second network cost matrix for allocating one or more tasks to one or more possible optimally placed virtual machines of the first solution, and determining a second solution to a second optimization problem of task allocation onto one or more possible optimally placed virtual machines of the first solution based on the second network cost matrix.