Cloud environment is a dynamic environment where application and services may change, based on the demands of VM users.

Cloud environments can be a source of reduced cost. One of the biggest cost savings is the transition from capital expense to operational expense. When setting up a traditional environment, the infrastructure and equipment have to be purchased ahead of time. This equipment is usually purchased as part of an organization’s capital budget. In a cloud environment, you don’t have to worry about purchasing the equipment; you only pay for the service. The cost of the service will usually count against an organization’s operational budget. Generally, it’s easier to get operational expenses approved than to get capital expenses approved. In addition, traditional cloud environments are built using utility storage and utility computing. These are generally cheaper than more specialized components.

In cloud environments, one of the most pervasive and fundamental challenges for organizations in demonstrating policy compliance is proving that the physical and virtual infrastructure of the cloud can be trusted—particularly when those infrastructure components are owned and managed by external service providers.