Dynamically Resizing A Virtual Machine Container

Embodiments of the present invention pertain to dynamically resizing a virtual machine container. According to one embodiment, an optimal utilization is determined based on a desired performance for a multi-tiered application and transaction mix information that describes a mix of transactions that result from executing the multi-tiered application. Automatic modification of an amount of a physical resource a virtual machine container is entitled to for executing a particular application component associated with the multi-tiered application is enabled where the amount is automatically modified based on the optimal utilization.