In Today's world, IT technologies are growing day by day so the need of computing and storage are growing with it. The increasing of cloud services demands requires more computing resources to fulfill the end user's requirements. So, energy consumption by cloud computing resources is also increasing day by day and become a key problem in cloud environment. In cloud computing, data centers consume huge amount of energy and also emit carbon dioxide in the environment. For energy optimization,

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... gy efficient resource management is required. In this paper a novel approach is presented to manage the power usage of virtual machines by introducing a dynamic programming algorithm that would be responsible for the selection of the best virtual machines that would cater for the migration from an overloaded physical machine. In order to identify the overloaded physical machines, underloaded physical machines and how many of them have no tasks; the ratio of occupied resources is calculated using MIPS, RAM and Bandwidth. Optimally selection of Virtual Machines and place them on appropriate host lead to minimize energy consumption.