Cloud deployments combine management innovation and technical innovation. They require network bandwidth and connectivity, software that will support flexible and scalable remote operation, and hardware designed for cloud datacenters. Cloud success depends on both technology and management to achieve its goals of technical efficiency and capacity as well as opening new potential for IT-based business. From the view of service management, cloud deployments and even private clouds are form of outsourcings. Clouds must be managed like outsourced services. ITIL guidance on outsourcing applies to clouds. Cloud deployments also require increased cooperation between technical and business specialists in several areas. Cloud deployments, especially SaaS deployments, have generated requirements for rapid incremental releases and have driven evolving software development methodologies that fit well with ITIL continual service improvement.