diff --git a/src/index.ts b/src/index.ts
index cdab86c..1c7309d 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -1,5 +1,52 @@
-export class SampleClass {
-  add(a: number, b: number): number {
-    return a+b;
+export interface VM {
+  cpu: number,
+  memory: number,
+  network: number,
+}
+
+export interface ServerCapacity {
+  limitCpu: number,
+  limitMemory: number,
+  limitNetwork: number,
+}
+
+export type Server = Set<VM>;
+
+
+export class ServerConsolidation {
+  doesVmFitOnServer(vm: VM, capacity: ServerCapacity): boolean {
+    return vm.cpu <= capacity.limitCpu &&
+      vm.memory <= capacity.limitMemory &&
+      vm.network <= capacity.limitNetwork;
+  }
+
+  reduceCapacity(vm: VM, capacity: ServerCapacity): void {
+    capacity.limitCpu -= vm.cpu;
+    capacity.limitMemory -= vm.memory;
+    capacity.limitNetwork -= vm.network;
+  }
+
+  fit(vms: VM[], capacity: ServerCapacity): Server[] {
+    const servers: Server[] = [];
+    const capacitiesLeft: ServerCapacity[] = [];
+    for (const vm of vms) {
+      let found = false;
+      for (const [idx, server] of servers.entries()) {
+        const capacity = capacitiesLeft[idx];
+        if (this.doesVmFitOnServer(vm, capacity)) {
+          found = true;
+          server.add(vm);
+          this.reduceCapacity(vm, capacity);
+          break;
+        }
+      }
+      if (!found) {
+        servers.push(new Set([vm]));
+        const newCapacity = {...capacity};
+        this.reduceCapacity(vm, newCapacity);
+        capacitiesLeft.push(newCapacity);
+      }
+    }
+    return servers;
   }
 }
diff --git a/test/index.ts b/test/index.ts
index 80d2c5f..f6556e6 100644
--- a/test/index.ts
+++ b/test/index.ts
@@ -1,16 +1,140 @@
 import {expect} from 'chai';
-import {SampleClass} from '../src';
+import {ServerCapacity, ServerConsolidation, VM, Server} from '../src';
 
-describe('index', () => {
-  it('main', () => {
-    const cls = new SampleClass();
-    const cases: [number, number, unknown][] = [
-      [2, 3, 5],
-      [2, 0, 2],
-      [500, -10, 490],
+interface TestCase {
+  vms: VM[],
+  capacity: ServerCapacity,
+  results: Server[],
+}
+
+describe('ServerConsolidation - fit', () => {
+  const cls = new ServerConsolidation();
+  const vms: {[name: string]: VM} = {
+    'a': {
+      cpu: 1,
+      memory: 1,
+      network: 1,
+    },
+    'b': {
+      cpu: 2,
+      memory: 2,
+      network: 2,
+    },
+    'b-copy': {
+      cpu: 2,
+      memory: 2,
+      network: 2,
+    },
+    'large': {
+      cpu: 10,
+      memory: 10,
+      network: 10,
+    },
+    'd': {
+      cpu: 3,
+      memory: 3,
+      network: 3,
+    },
+  };
+
+  it('should match server allocation', () => {
+    const cases: TestCase[] = [
+      // every vm fits on a single server
+      {
+        vms: [vms.a, vms.b],
+        capacity: {
+          limitCpu: 10,
+          limitMemory: 10,
+          limitNetwork: 10,
+        },
+        results: [
+          new Set([vms.a, vms.b]),
+        ],
+      },
+      // multiple servers needed
+      {
+        vms: [vms.a, vms.b, vms.large],
+        capacity: {
+          limitCpu: 10,
+          limitMemory: 10,
+          limitNetwork: 10,
+        },
+        results: [
+          new Set([vms.a, vms.b]),
+          new Set([vms.large]),
+        ],
+      },
+      // reuse of existing servers
+      {
+        vms: [
+          vms.a, vms.b, vms.large, vms.d],
+        capacity: {
+          limitCpu: 10,
+          limitMemory: 10,
+          limitNetwork: 10,
+        },
+        results: [
+          new Set([vms.a, vms.b, vms.d]),
+          new Set([vms.large]),
+        ],
+      },
     ];
-    for (const [a, b, res] of cases) {
-      expect(cls.add(a, b)).to.be.deep.equal(res);
+    for (const {vms, capacity, results} of cases) {
+      const servers = cls.fit(vms, capacity);
+      for (const [idx, server] of servers.entries()) {
+        const result = results[idx];
+        expect(server).to.eqls(result);
+      }
+    }
+  });
+
+  it('should match reference', () => {
+    const cases: TestCase[] = [
+      // same reference of objects
+      {
+        vms: [
+          vms.a,
+        ],
+        capacity: {
+          limitCpu: 10,
+          limitMemory: 10,
+          limitNetwork: 10,
+        },
+        results: [
+          new Set([
+            vms.a,
+          ]),
+        ],
+      },
+    ];
+    for (const {vms, capacity, results} of cases) {
+      const servers = cls.fit(vms, capacity);
+      for (const server of servers[0]) {
+        results[0].has(server);
+      }
     }
   });
 });
+
+describe('ServerConsolidation - reduceCapacity', () => {
+  const cls = new ServerConsolidation();
+  it('should equal', () => {
+    const capacity: ServerCapacity = {
+      limitCpu: 10,
+      limitMemory: 3,
+      limitNetwork: 9,
+    };
+    const vm: VM = {
+      cpu: 3,
+      memory: 1,
+      network: 0,
+    };
+    const result: ServerCapacity = {
+      limitCpu: 7,
+      limitMemory: 2,
+      limitNetwork: 9,
+    };
+    cls.reduceCapacity(vm, capacity);
+    expect(capacity).to.deep.equal(result);
+  });
+});