A system and a method are provided. Performance and capacity statistics, with respect to an application executing on one or more VMs, may be accessed and collected. The collected performance and capacity statistics may be analyzed to determine an improved hardware profile for efficiently executing the application on a VM. VMs with a virtual hardware configuration matching the improved hardware profile may be scheduled and deployed to execute the application. Performance and capacity statistics, with respect to the VMs, may be periodically analyzed to determine whether a threshold condition has occurred. When the threshold condition has been determined to have occurred, performance and capacity statistics, with respect to VMs having different configurations corresponding to different hardware profiles, may be automatically analyzed to determine an updated improved hardware profile. VMs for executing the application may be redeployed with virtual hardware configurations matching the updated improved profile.