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In a cloud computing environment, dynamic resource allocation and reallocation are keys for accommodating unpredictable demands and, ultimately, contribute to investment return. This article discusses this process in the context of distributed clouds, which are seen as systems where application developers can selectively lease geographically distributed resources. This article highlights and categorizes the main challenges inherent to the resource allocation process particular to distributed clouds, offering a stepwise view of this process that covers the initial modeling phase through to the optimization phase.