A virtualized computing system for executing a distributed computing application, such as Hadoop, is discussed. The virtualized computing system stores data in a distributed filesystem, such as Hadoop Distributed File System, and processes data using a topology awareness that takes into account the virtualization layer of the virtualized computing system. The virtualized computing system employs locality-related policies, including replica placement policies, replica choosing policies, balancer policies, and task scheduling policies that take advantage of the awareness of the virtualization topology.