Abstract-The increasing heterogeneity of cloud resources, and the increasing diversity of services being deployed in cloud environments are leading to significant increases in the complexities of cloud resource management. This paper presents an architecture to manage heterogeneous resources and to improve service delivery in cloud environments. A loosely-coupled, hierarchical, selfadapting management model, deployed across multiple layers, is used for heterogeneous resource management. Moreover, a service-specific coalition formation mechanism is employed to identify appropriate resources to support the process parallelism associated with high performance services. Finally, a proofof-concept of the proposed hierarchical cloud architecture, as realized in CloudLightning project, is presented.