One of the key ideas concealed behind the somewhat vague concept of cloud computing is the abstraction of an application's platform at various levels.
This can include IaaS (Infrastructure as a Service) in particular, but also PaaS (Platform as a Service) and SaaS (Software as a Service).
Naturally, virtualisation is crucial to setting up IaaS. However, it requires making virtual machines available in a completely automated manner. Monitoring of resource use for billing purposes is part of the cloud computing business model and so should be an integral part of any IaaS solution. The product should also handle the automatic configuration of a permanent storage space for VMs, as well as providing for their network connectivity.
For organisations wishing to build their own IaaS, open source solutions like OpenStack are now available and make it possible to industrialise virtualisation.

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