Abstract: A resource management system for a virtual machine computing environment includes a software component that optimizes capacity between server clusters or groups by monitoring the capacity of server clusters or groups and automatically adding and removing host systems to and from server clusters or groups. The software component may be implemented at a server cluster management level to monitor and execute host system moves between server clusters and/or at a higher level in the resource management hierarchy. At the higher level, the software component is configured to monitor and execute host system moves between sets of server clusters being managed by different server cluster management agents.