It's an over-engineered mess. The cloud: a way to abstract DC resources and run multiple applications across an arbitrary cluster of hosts.
So, uh, like processes running on a kernel.
Virtualization solves a problem only Windows ever had: software co-existence. But not even DLL Hell is a problem anymore.
So why do the likes of BNP rate it a success?
1. The provisioning tools are really simple (this is why VMware beat Xen), and
2. It is really easy to describe to CIOs whose last hands-on was with COBOL.
As for chargebacks, the psychology and economics are disastrous. Shame on the register for even suggesting that internal markets are a solution, not a problem.