The cloud resource allocation is a cumbersome process which doesn’t work on constant resource allocation it has to be dynamically allocated with respect to the requirements. Unlike other software’s the cloud instances does not provide a platform to predict a resource need in advance. The present system relays on a centralized resource allocation service running some ware in the cloud which periodically checks in some fashion, so the clients with resource need have to wait till its turn arrives. In our previous phase we had tried to decentralize the resource reallocation process using gossip protocol. Now in this phase we try to add more features to it so that the resource allocation is much better. We will be categorizing the different virtual environments based on their requirements like CPU or ram or storage space, etc. And we will make sure that the time taken to find out the eligible resource provider is reduced to the bare minimum. Based on the preference list collected by the machines requiring resources the gossip protocol will connect with the resource provider randomly to get the resource allocated.