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1. If dedicated resources get exhausted for a domain/account, VM deployment will not fail unless shared implicit resources has no free empty host, provided  SO Implicit dedication flag: ON and service offering flag: ON.
2. VMs that belong to two different offerings can be on the same host as long as they belong to the same account /domain and have isdedicated flag ONand host is implicitly dedicated . For e.g. If an instance is deployed by account user and : 
            a. If that account has dedicated resources, service offering flag "isdedicated" checked, then VM will be deployed on the dedicated host having VMs of same account or on the host which is empty.
            b. If that account has NO dedicated resources, service offering flag "isdedicated" checked then VM will be deployed on the host which is empty and that host will become dedicated to this account.
3. The dedicated VM of other accounts (e.g. A2 or A3 ) of same domain or other domain, cannot use above host, but can use an empty host or host having vms of same account(A2 or A3). 
4. If the service offering flag if OFF, the VM  will be deployed as CloudStack is doing now but should not use the host marked "dedicated for domain/account x".
5. If no such host exists, VM operation should fail. 
6. If the dedication is removed and host has NO dedicated VMs, then host will be available for all the accounts.
7. The following Figure graphically illustrates the allocation of hosts for VM deployment. Host 1 is explicitly dedicated to domain D1, Host 2 is implicitly dedicated, and Host 3 is a shared host. 
   

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