1. A method of cloning virtual machines executing in a plurality of hosts connected to a computer network, wherein the plurality of hosts comprises a source host and a plurality of target hosts including a first target host, the method comprising: receiving a request to clone a source virtual machine to the first target host, wherein the source virtual machine is stored on a source data store that is accessible to the source host and the first target host; creating a first linked clone of the source virtual machine on a first target data store, wherein the first target data store is accessible to the first target host; starting execution of the first linked clone on the first target host; while the first linked clone is executing on the first target host, creating a first intermediate clone of the source virtual machine on the first target data store; and after creating the first intermediate clone: suspending execution in the first linked clone; updating the first intermediate clone based on a modified state of the first linked clone, wherein the updating transforms the first intermediate clone into a first full clone; and resuming execution in the first full clone.