An example method of launching a virtual machine in a multi-tenant environment using dynamic configuration may include receiving a customer request to launch a virtual machine in the multi-tenant environment. The multi-tenant environment may include a plurality of host server computers. In response to the customer request, configuration parameters stored in association with an account of the customer may be retrieved in the multi-tenant environment. One or more parameters of a hardware and/or a software resource in the multi-tenant environment may be dynamically configured in accordance with the retrieved configuration parameters. The virtual machine may be launched on one of the plurality of host server computers, using the configured hardware and/or software resource. The configuration parameters may be associated with at least one desired performance characteristic of the virtual machine to be launched.