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It is necessary to deploy any application in Cloud environment to reduce the investment cost, maintenance cost and licence of hardware/software. Keeping these benefits, it is advised to go for cloud computing environment for any application deployment. The major challenge in this environment is fault tolerance of resources to support for continuous availability of resources to client for working. Especially in IoT applications, we use Fog networking connecting to cloud computing. In this scenario, it is advised to use KNN (K- Nearest Neighbour) resource identification and allocation algorithm to increase the throughput to user requirement. We are presenting an approach to allocate the required resources with optimal distance resource allocation, so as to improve the throughput of user requirement.