1. A system for application instantiation failover optimization, comprising: a plurality of servers configured into a server cluster, wherein the plurality of servers is comprised of a combination of one or more physical machines and one or more virtual machines, and wherein each server within the server cluster includes a local monitor engine, a cluster monitor engine, a performance monitor engine, and an alert handler engine; at least one instantiation of an application configured to operate on an instance container on at least one of the plurality of servers and wherein the instance container is a virtual host that operates on top of, and move freely between, the one or more virtual machines and the one or more physical servers of the server cluster and wherein the instance container instantiates at least one virtual internet protocol address distinct from an internet protocol address of the virtual machines on which it operates; a service level agreement associated with the at least one instantiation of the application identifying minimum application performance requirements for the instantiation of the application; and a failover policy identifying by the cluster monitor engine one or more servers within the server cluster operable to accept the virtual host and instantiation of the application and meet the service level agreement and wherein responsive to the instantiation of the application failing to meet the service level agreement, failing over the virtual host and instantiation of the application to one of the identified one or more servers within the server cluster.