An Information Handling System (IHS) includes a processor device in communication with a network interface and a memory containing a queue of one or more virtual machine (VM) workloads. The processor device determines, based on monitored resource utilization, a constraining resource of a selected server that is performing one of storage services and network services and assigns a Quality of Service (QoS) threshold to the selected server based on the constraining resource. The processor device assigns VM workload/s, from among compute workloads, to a VM of the IHS based on requirements of the VM for resource utilization. In response to determining that the selected server has failed to satisfy the QoS threshold the predefined number of times over the monitoring interval, the processor device migrates at least one of the assigned VM workloads away from the selected server to another server of the IHS.