The very important advantage of cloud computing is the ability to provision resources on demand. This avoids the problems of over-provisioning and under-provisioning which are commonly seen with organizations that have widely variable requirements due to increase/decrease, seasonal high and low workload etc. Resource allocation policies decide the amount of resource to be allocated to a particular or set of virtual machines (VMs). This resource allotment policy can also update the dynamically. For implementing prioritization, it requires to provide more resource to a specific virtual machine, compared to another virtual machine The resources offered may include memory consumption, storage, CPU processing power, IT services, and so on. Many of the touted gain in cloud computing that comes from resource multiplexing through virtualization technology.