Techniques for dynamically managing a sleep state of a virtual machine are provided. The techniques include detecting idleness of a virtual machine, putting the idle virtual machine into a sleep state, implementing a virtual machine surrogate, wherein the virtual machine surrogate listens to network traffic, enabling the virtual machine to handle network traffic that is capable of being handled by the virtual machine, and enabling the virtual machine to queue network traffic and wake-up the virtual machine in the sleep state for network traffic that the virtual machine surrogate is incapable of handling.