Watcher is an open source software package which provides a flexible and scalable resource optimization service for multi-tenant OpenStack-based clouds. Watcher provides a complete optimization loop—including everything from a metrics receiver, optimization processor and an action plan applier. This provides a robust framework to realize a wide range of cloud optimization goals, including the reduction of data center operating costs, increased system performance via intelligent virtual machine migration,increased energy efficiency, etc. The overall goal is that OpenStack-based clouds equipped with Watcher will decrease their Total Cost of Ownership by way of more efficient use of their infrastructure through targeted optimizations and close-loop automation. In this presentation we will go over the state of Watcher as it is today, its architecture, the team’s accomplishments for the Mitaka release and our plans for the N-release and beyond.