This technology relates to a device and method for determining co-locatability of a plurality of virtual machines on one or more physical infrastructures. The plurality of virtual machines hosts a plurality of workloads. This involves identifying workloads which have high variability from the time series data and determining the workload capacity threshold of the identified workloads. Thereafter, the candidate workloads are selected among the identified workloads to colocate on a virtual machine based on the workload variability. After that, the total capacity required by each candidate workload pair to meet the service requirement is determined based on the workload capacity threshold. Then, an optimal sharing point of each workload of the pair with respect to the other workload of the pair is identified. Further, percentage compatibility of each workload pair is determined and finally, the candidate workloads are colocated based on the optimal sharing point and percentage compatibility.