Cloud computing is capable of handling a huge amount of growing work in a predestined manner for the usage of the business customers. The main enabling technology for cloud computing is virtualization which generalize the physical infrastructure and makes it easy to use and manage. In this project virtualization is used to allocate resources based on their needs and also supports green computing concept. “Skewness” concept is introduced here in which the same is minimized to combine various workloads to improve the utilization of the server. Managing the customer demand creates the challenges of on demand resource allocation. So can implement Virtual Machine (VM) technology has been employed for resource provisioning. It is expected that using virtualized environment will reduce the average job response time as well as executes the task according to the availability of resources. Hence VMs are allocated to the user based on characteristics of the job. The VM live migration technology makes the VM and PM (Physical machine) mapping possible when the execution is running.