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Traditionally, organizations adopted virtualization for the primary reason of reducing total cost of ownership and gaining a return on investments in the data center. The advent of cloud computing has transformed the scenario to a great extent now. Now, an IT operation is expected to produce more benefits than just cost savings. Understanding how decisions made now will affect organization’s ability to adapt later is important in both cases—whether moving to virtualization for the first time or deploying a sophisticated cloud-ready infrastructure. Organizations need to ensure that the technology they deploy in their data center acts as a strong foundation that can adapt to the next generations of virtualization and cloud computing.