A virtual machine management/monitoring service can be configured to automatically monitor and implement user-defined (e.g., administrator-defined) configuration policies with respect to virtual machine and application resource utilization. In one implementation, the monitoring service can be extended to provide user-customized alerts based on various particularly defined events that occur (e.g., some memory or processing threshold) during operation of the virtual machines and/or application execution. The user can also specify particularly tailored solutions, which can include automatically reallocating physical host resources without additional user input on a given physical host, or moving/adding virtual machines on other physical hosts. For example, the monitoring service can be configured so that, upon identifying that a virtual machine's memory and processing resources are maxed out and/or growing, the monitoring service adds memory or processing resources for the virtual machine, or adds a new virtual machine to handle the load for the application program.
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