There is no doubt that companies can benefit from existing Software as a Service offerings as they build their own practical cloud solution. Virtualization enables cloud deployments and generates tremendous benefits in terms of cost reduction, space consolidation and high-availability. But cloud technology also introduces more components to manage as well as new challenges around security, back-up and performance.
Virtualization can also strain existing organizational structures designed for physical environments. The evolution to get to a cloud strategy that best meets the unique needs of each individual business often starts with a private cloud environment that consists of both a virtualized compute model as well as a virtualized infrastructure and virtualized storage models.