Method and system for managing resources in a data center

The present invention provides dynamic configuration and allocation of resources in a data center. These resources are monitored for availability and performance information according to their assigned execution (or application) environments. The measured performance information for each environment is used to predict levels of demand for an application in the environment. From the predicted levels of demand resource requirements can be determined to provide a predetermined level of performance under the demand changes. The resources can then be reconfigured or reallocated to different environment so that the requirements of each environment can be met.