Cloud computing is generally termed as just pay for what you use .It divided into three categories they are SAAS, PAAS, IAAS. It provide Information Technology as a service over the Internet(or)dedicated network with delivery on demand and payment based on usage. It ranges from full applications and development platforms, servers, storage and virtual desktops. In the previous system, improper use of Virtual Machine leads to the imbalance load distribution and increasing operation cost. Now we proposed, Paper speaks about each Virtual Machine as a two-state Markov chain to capture burstiness, then we design a resource reservation strategy for each physical machine based on stationary distribution of a mark chain. This migration of Virtual Machine provides a method to distribute physical resource more reasonably without stopping service, so that energy is consumed and operation cost is reduced. After the modification is our implementation process. We deploy two types of systems, Hot Machines can handle the current job, Warm Machines are kept idle state until job is assigned. We deploy three Virtual servers for every machine. 1st Job is assigned to the Hot machine 1st Virtual machine and same way following jobs are assigned to other Virtual Machines. Now jobs are assigned to the Warm machines once all the Virtual Machines of Hot category have occupied with the jobs. Automatic migration of job is implemented, so as to transfer the load to the Hot Virtual Machine from Warm Virtual Machine once it has completed the job. We also implemented cache mechanism.