A system is provided for clustering events. A first engine is configured to receive message data from managed infrastructure that includes managed infrastructure physical hardware that supports the flow and processing of information. A second engine determines common characteristics of events and produces clusters of events relating to a failure of errors in the managed infrastructure. Membership in a cluster indicates a common factor of the events that is a failure or an actionable problem in the physical hardware managed infrastructure directed to supporting the flow and processing of information. One or more situations are created that is a collection of one or more events or alerts representative of the actionable problem in the managed infrastructure. In response to the production of the clusters one or more physical changes in the managed infrastructure hardware.