The availability of high-capacity networks, low-cost computers, storage devices as well as the widespread adoption of hardware virtualization, service-oriented architecture, and autonomic and utility computing has led to growth in cloud computing. In today’s era of cloud-based services, all intelligent transportation systems are connected to improve transportation safety and enhance the comfort of driving. The vision of all vehicles connected poses a significant challenge to the collection and storage of large amounts of traffic-related data. We propose to integrate cloud computing and vehicular networks in such a way that the vehicles can share computation resources, storage resources, and bandwidth resources. The proposed architecture includes a vehicular cloud, a roadside cloud, and a central cloud. A game-theoretical approach is presented to optimally allocate cloud resources. Virtual machine migration due to vehicle mobility is solved based on a resource reservation scheme.