Methods for allocation of storage resources, performance monitoring, and reallocation of resources to eliminate hot spots, by specifying high-level goals, rather than by means of low-level manual steps. Policies are specified as administrator specified constraints under which the resources are managed. Goals are specified in terms of performance, availability, and security requirements of the desired storage. As a part of the automation, this invention provides a method for analyzing capabilities of the computer storage system and forming analysis results, which are later used for determining an allocation of resources that will meet the high-level goals specified. This invention also provides methods for automatic monitoring of performance, availability, and security goals for allocated resources. If goals are not met, resources are reallocated so that the goals can be met with the allocation. The invention reduces human involvement, allows policy control, minimizes error, and provides efficient service delivery specified by policies.