Cloud systems include both locally based servers at user premises and remote servers and multiple Clouds that can be reached over the Internet. This paper describes a smart distributed system that combines local and remote Cloud facilities. It operates with a task allocation system that takes decisions to allocate tasks dynamically to the service that offers the best overall Quality of Service and a routing overlay which optimizes network delay for data transfer between clouds. Internet-scale experiments exhibit the effectiveness of our approach in adaptively distributing workload across multiple clouds.