This paper describes Service Clouds, a distributed infrastructure designed to facilitate rapid prototyping and deployment of services that enhance communication performance, robustness, and security. The infrastructure combines adaptive middleware functionality with an overlay network substrate in order to support dynamic instantiation and reconfiguration of services. The Service Clouds architecture includes a collection of lowlevel facilities that can be either invoked directly by applications or used to compose more complex services. After describing the Service Clouds architecture, we present results of two experimental case studies conducted on the PlanetLab Internet testbed, the first to improve throughput of bulk data transfer, and the second to enhance the robustness of multimedia streaming.