A computer-implemented method comprises obtaining a cache hit ratio for each of a plurality of virtual machines, and identifying, from among the plurality of virtual machines, a first virtual machine having a cache hit ratio that is less than a threshold ratio. The identified first virtual machine is then migrated from the first physical server having a first cache size to a second physical server having a second cache size that is greater than the first cache size. Optionally, a virtual machine having a cache hit ratio that is less than a threshold ratio is identified on a class-specific basis, such as for L1 cache, L2 cache and L3 cache.