To provide effective and reliable services, cloud datacenters need parallel computing and virtualization techniques. This work presents an improved virtual machine (VM) placement mechanism, called Energy efficiency and Quality of Service (QoS) aware VM Placement (EQVMP) to overcome the problem of unbalanced traffic load in switching on and off VMs for the purpose of energy saving. EQVMP combines three key techniques: (1) hop reduction, (2) energy saving and (3) load balancing. Hop reduction can regroup VMs to lower the traffic load among them. Energy saving techniques aim at choosing the appropriate servers. The proposed load balancing updates VM placement periodically. Our experimental results show that the proposed scheme can lower energy consumption and maintain QoS. We propose an evaluation score  to assess VM placement in terms of energy, delay and throughput. Comparing to other existing placement policies, our proposed mechanism can enhance system throughput by 25% and can have better evaluation score.