Determination should include

• rapid elasticity
• on-demand service
• complex technology required for security
• cost of virtualization vs. physical servers
• cost of cloud vs. on-premises computing.

Process/Skill Questions: 

• How is virtualization used in cloud computing?
• In terms of rapid elasticity, how does a cloud environment handle a sudden spike in website traffic compared to a traditional on-premises data center? 
• How does shifting from an on-premises server model to a cloud-computing model change a company’s financial responsibility regarding hardware maintenance and electricity costs? 
• If a single physical server hosting ten VMs suffers a catastrophic hardware failure, what is the impact on the organization compared to the same failure in a non-virtualized environment?