Many cloud service providers face problems due to VM migration in the clustered server. Due to over migration of VM there is a loss of power, resource, costs etc. Sometimes clusters may be overloaded, demand of the CPU performance exceeds the available capacity, so a violation of the SLAs established between the resources providers may occur. To reduce these facts decision making schema is proposed in this paper. This paper will be used to decide whether to migrate the VM and to switch the cluster in sleep mode or to switch the state of cluster from sleep mode to active mode.