The goal of virtual machine placement in cloud environment is to provide better service to the cloud users, and also the effective use of available resources. In this paper a review of various algorithms has been made and We present an approach to optimal virtual machine placement within datacenters. A technique for finest load balancing is developed, based on the request intensity. This approach classifies the request based on the intensity into high, medium and low then three different enhanced algorithms are used to place the VMs in the respective queues to maximize the resource utilization rate and minimize the Number of PMs used, Response time, SLA Violation Rate, Power Usage, Load Imbalance Rate, and Migration Rate. The evaluation results propose that our algorithms are realistic, and that these can be used in the cloud environment for placing the VMs effectively to the PMs.