Patent attributes
Capability based placement can be used for placing virtual machine instances on server computers (which can be configured to support one or more virtual machine slots) that are capable of running the instances in an efficient manner. For example, capability tags can be determined from the detailed characteristics (e.g., detailed hardware, software, and/or other characteristics) of the server computer and/or slots. For example, capability tags can indicate capabilities such as disk throughput, network bandwidth, database support, encryption support, video editing support, etc. Requests to launch virtual machine instances can be received and capability tags can be determined from the requests. Servers and/or slots that match the determined capability tags can be identified and used for launching the instances.