A virtual hard drive (VHD) file manager system for a virtualized logical server cloud including a master repository and a VHD file manager. The VHD interfaces virtualization software and a server cloud manager to manage VHDs for logical servers of the server cloud. The master repository stores multiple master component files associated with the stored VHDs. The master component files include at least one core file and at least one delta file. The VHD file manager enables copying of the master component files to deploy VHDs in the server cloud, manages creation and storing of new delta files and corresponding VHDs in the master repository, and generates and maintains meta information to maintain file relationship integrity.