ABSTRACT:Cloud computing is becoming popular Buzzword today. Cloud computing provides opportunity to dynamically scale the computing resources for applications, which is shared among customers using virtualization technology. Infrastructure as a Service (IaaS) allows the cloud provider freely locate the infrastructure over the internet in cost-effective manner by migrating in the form of virtual machine. A resource monitoring system, monitors utilization of resources of host machine can be used as a base criteria for determining idle machine. Utilizing this types of idle machines results in effective utilization of machine, energy saving etc. Hence, proposed system uses collection of Virtual Machines (VMs) running on unused computers at the edge and allocate them dynamically, based on user demands. Proposed system is Designed and implemented as an inventory management system in which server manages heterogeneous system, handles end-user request and serve them effective virtual machine. There are three main issues discussed in this paper (I) -Resource monitoring and connection establishment‖ (II) -Inventory management system‖ i.e. finding efficient virtual machine and allocating them. (III) -Reallocation of the Virtual Machines‖, re-configuring the VM if required Machines configuration is not available on cloud side. This paper analyses problem from the perspective of an end-users like small and middle organization. Which uses cloud Services in order to achieve scalable provisioning with respect to Qos constraints.