The cloud is all the hype now, but most people don’t keep in mind that it is not a silver bullet or a panacea. The cloud (or more technically speaking), the use of large scale virtualization is recommended for specific use cases. In this article, we’re going to go through these use cases for which the cloud is recommended. In the final chapter, I am going to emphasize some of the caveats, traps and risks associated with transitioning to the cloud.