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In this position paper, we propose dynamic instantiation of virtual appliances, that is, virtual machines with storage functionality, as a mechanism to meet storage SLOs efficiently.<\/jats:p>\n          <jats:p>In order for dynamic instantiation to be realistic for rapidlychanging environments, it should be automated. Therefore, an important goal of this paper is to show that such automation is feasible. We do so through a caching case study. Specifically, we build the automation framework for dynamically instantiating virtual caching appliances. This framework identifies sets of interfering workloads that can benefit from caching, determines the cache-size requirements of workloads, non-disruptively migrates the application to use the cache, and warms the cache to quickly return to acceptable service levels. 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