Cloud computing is an emerging computing technology. In a large cloud environment the problem arises with the resource allocation. Under CPU and memory constraints the authors formalize the resource allocation problem. They propose a generic gossip protocol for resource allocation. Generic gossip protocol which aims at minimizing power consumption through server consolidation, while satisfying a changing load pattern. The generic Gossip protocol is otherwise called GRMP-Q, provides an efficient heuristic solution. Load balancing is one of the main challenges in cloud computing.