The present disclosure relates to dynamically allocating multitier applications based upon performance and reliability of resources. A controller analyzes resources and applications hosted by the resources, and collects operational data relating to the applications and resources. The controller is configured to determine an allocation scheme for allocating or reallocating the applications upon failure of a resource and/or upon rollout or distribution of a new application. The controller generates configuration data that describes steps for implementing the allocation scheme. The resources are monitored, in some embodiments, by monitoring devices. The monitoring devices collect and report the operational information and generate alarms if resources fail.