Abstract: Cloud computing is frequently alluded to as a model that furnishes boundless information handling conveniences with compensation for each utilization framework. Present-day cloud foundations resources as virtual machines (VMs) to actual machines utilizing virtualization innovation. All VMs works their involved structure and exhaust resources from their actual machine which behaves like a host. For load adjusting, Cloud moves VMs from exceptionally troubled real machines to low troubled actual machines. The delay of this calculation expansions in the organization as virtual machines are relocated. This work puts forward a new algorithm, namely o for VM migration. The proposed optimization algorithm has been implemented in MATLAB software. A comparative analysis is performed between the outcomes of the preceding and the new algorithm. The proposed algorithm has been evaluated over three performance parameters including delay, bandwidth used and space used.