Abstract: One of the most important challenges in Cloud Network is the matter of allocating physical resources to virtual machines. The goal of this paper is to present a method to have an optimized installation of virtual machines’ resources onto physical machines with intelligent water drop so that overall energy consumption in data center is reduced with decreasing the number of active physical servers. Utilizing policies to host overload detection and immigrant virtual machine; and through comparing results of simulation with existing methods; is the best method to manage physical resources in cloud networks which for this purpose, intelligent water drop algorithm has been used. Also to simulate cloud environment, Cloudsim 3.0 simulator library in Netbeans IDE 7.4 develop environment are going to be used. Results shows that in comparison with other methods, the algorithm of intelligent water drop using MAD algorithms as host overload detection algorithm and MMT as the algorithm of selecting virtual machine, the most optimized answer will be found for physical resource management in cloud computing.

Keywords: cloud computing, resource management, water drop algorithm, intelligent water drop.