When there are either design or implementation flaws, a homogeneous architecture is likely to be disrupted entirely by a single attack (e.g., a worm) that exploits its vulnerability. Following the survivability through heterogeneity philosophy, we present a novel approach to improving survivability of networked systems by adopting the technique of software diversity. Specifically, we design an efficient algorithm to select and deploy a set of off-the-shelf software to hosts in a networked system, such that the number and types of vulnerabilities presented on one host would be different from that on its neighboring nodes. In this way, we are able to contain a worm in an isolated “island”. This algorithm addresses software assignment problem in more complex scenarios by taking into consideration practical constraints, e.g., hosts may have diverse requirements based on different system prerequisites. We evaluate the performance of our algorithm through simulations on both simple and complex system models. The results confirm the effectiveness and scalability of our algorithm.