—Cloud computing centers face the key challenge of provisioning diverse virtual machine instances in an elastic and scalable manner. To address this challenge, we have performed an analysis of VM instance traces collected at six production data centers during four months. One key finding is that the number of instances created from the same VM image is relatively small at a given time and thus conventional filebased p2p sharing approaches may not be effective. Based on the understanding that different VM image files often have many common chunks of data, we propose a chunk-level Virtual machine image Distribution Network (VDN). Our distribution scheme takes advantage of the hierarchical network topology of data centers to reduce the VM instance provisioning time and also to minimize the overhead of maintaining chunk location information. Evaluation shows that VDN achieves as much as 30–80x speed up for large VM images under heavy traffic.