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Cloud Computing can be viewed as a dynamically-scalable pool of resources. Virtualization is one of the key technologies enabling Cloud Computing functionalities. Virtual machines (VMs) scheduling and allocation is essential in Cloud Computing environment. In this paper, two dynamic VMs scheduling and allocating schemes are presented and compared. One dynamically on-demand allocates VMs while the other deploys optimal threshold to control the scheduling and allocating of VMs. The aim is to dynamically allocate the virtual resources among the Cloud Computing applications based on their load changes to improve resource utilization and reduce the user usage cost. The schemes are implemented by using SimPy, and the simulation results show that the proposed adaptive scheme with one threshold can be effectively applied in a Cloud Computing environment both performance-wise and cost-wise.