Abstract: System and computer-implemented method for managing multi-availability zone (AZ) clusters of host computers in a cloud computing environment automatically detects a degraded state of a first AZ in the cloud computing environment based on host failure events for host computers in a first cluster section of a multi-AZ cluster of host computers located in the first AZ and a recovered state of the first AZ based a successful scale-in operation of another multi-AZ cluster located partially in the first AZ. In response to the detection of the degraded state of the first AZ, a second cluster section of the multi-AZ cluster of host computers located in a second AZ is scaled out. In response to the detection of the recovered state of the first AZ, the second cluster section of the multi-AZ cluster of host computers located in the second AZ is scaled in.