The Mobile Cloud Network is an emerging cost and capacity heterogeneous distributed cloud topological paradigm that aims to remedy the application performance constraints imposed by centralised cloud infrastructures. A centralised cloud infrastructure and the adjoining Telecom network will struggle to accommodate the exploding amount of traffic generated by forthcoming highly interactive applications. Cost effectively managing a Mobile Cloud Network computing infrastructure while meeting individual application’s performance goals is nontrivial and is at the core of our contribution. Due to the scale of a Mobile Cloud Network, a centralised approach is infeasible. Therefore, in this paper a distributed algorithm that addresses these challenges is presented. The presented approach works towards meeting individual application’s performance objectives, constricting system-wide operational cost, and mitigating resource usage skewness. The presented distributed algorithm does so by iteratively and independently acting on the objectives of each component with a common heuristic objective function. Systematic evaluations reveal that the presented algorithm quickly converges and performs near optimal in terms of system-wide operational cost and application performance, and significantly outperforms similar na¨ıve and random methods.