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On the Optimal Allocation of Virtual Resources in Cloud Computing Networks Abstract: To address this problem, an optimal cloud resource provisioning (OCRP) algorithm is proposed by formulating a stochastic programming model. Cloud computing is a paradigm shift in which the users are made to interact with “clouds” instead of the traditional mode. Online relationships in networks are often based on real world relationships and can therefore be used to infer a level of trust between users (Customers). Customers can purchase services in the form of Software as a Service (SaaS). The service providers can use multiplexing of varying workloads to provide computing as a utility. Our proposed optimal cloud resource provisioning (OCRP) algorithm motivated by optimal virtual machine placement ( OVMP) algorithm can yield the optimal solution for both resource provisioning and virtual machine (VM) placement in two provisioning stages. A cloud provider can performed the consumer two provisioning plans, reservation and/or on-demand plans. These resources are used in different time intervals, also called provisioning phases. There are three provisioning phases: reservation, expending, and on-demand phases. A provisioning stage is the time epoch when the cloud broker makes a decision to provision resources by purchasing reservation and/or on-demand plans, and also allocates VMs to cloud providers for utilizing the provisioned resources. Optimal cloud resource provisioning algorithm is developed to minimize the total provisioning costs under the price and demand uncertainty in multiple provisioning stages. A real world application of Financial System which uses private clouds for the stock financial instrument can greatly benefit the Share-Markets. Existing system: In the current system, SaaS (Software as a Service) is not implemented This imposes excessive cost on the user more than for what he actually Uses. The current system uses the concepts of grid computing only. It does not Permit anytime, anywhere computing. On-demand service for grid computing for available resource provisioning Option. K-nearest-neighbors algorithm was applied to predict the demand of resources. All the information in the current system can be accessed only within the Local infrastructure. It prevents interested users from accessing the at system their convenience. Proposed system: SaaS: In the proposed system, SaaS provides a network based access to commercially available software and their management. The extra demanded resources can be more efficiently provisioned, concept of resource slot, and also to address uncertainty of resources availability. The optimal cloud resource provisioning algorithm is proposed for the virtual machine management. The optimization formulation of stochastic integer programming is to Proposed obtain the decision of the OCRP algorithm as such the total of cost resource provisioning in cloud computing environments is Minimized. Application : Financial Cloud Computing with software and storage on a local computer, cloud computing allows sharing of resources across the Internet. System Requirements: Software Requirements Operating System : Programming language: c#.Net Web-Technology: ASP Front-End: ASP.NET Back-End: SQL SERVER Windows Hardware Requirements: Processor : Pentium 4 RAM : 512 MB and above Hard Disk : 40 GB and above