Fulfilling a service request in highly dynamic service environments may require deploying a service. Therefore, the effectiveness of service deployment systems affects initial service response times. On Infrastructure as a Service (IaaS) cloud systems deployable services are encapsulated in virtual appliances. Services are deployed by instantiating virtual machines with their virtual appliances. The virtual machine instantiation process is highly dependent on the size and availability of the virtual appliance that is maintained by service developers. This article proposes an automated virtual appliance creation service that aids the service developers to create efficiently deployable virtual appliances – in former systems this task was carried out manually by the developer. We present an algorithm that decomposes these appliances in order to replicate the common virtual appliance parts in IaaS systems. These parts are used to reduce the deployment time of the service by rebuildin...