Applications are automatically deployed in a distributed computing environment through the use of Smart Directories. In an embodiment, Smart Directories are a repository for copies of the applications currently deployed in the distributed computing environment. The Smart Directories are monitored by the distributed computing environment. New applications added to the Smart Directories are automatically deployed. Applications modified in the Smart Directories are automatically redeployed. Applications removed from the Smart Directories are automatically undeployed. The Smart Directories can automatically deploy applications packaged as a single file or unpackaged as several component files.