Embodiments perform automatic selection of hosts and/or datastores for deployment of a plurality of virtual machines (VMs) while monitoring and recovering from errors during deployment. Resource constraints associated with the VMs are compared against resources or characteristics of available hosts and datastores. A VM placement engine selects an optimal set of hosts/datastores and initiates VM creation automatically or in response to administrator authorization. During deployment, available resources are monitored enabling dynamic improvement of the set of recommended hosts/datastores and automatic recovery from errors occurring during deployment.