Cloud computing is a IT consumption and delivery model that offers new levels of scalability, self-service and collaboration necessary for tackling the world's most complex issues. This new delivery model, "Cloud computing" can significantly reduce IT costs for SAP operations in users organization. From the SAP end user perspective, cloud computing is a means of acquiring services without needing to understand the underlying technology. This allows new service models and can extend the business model of a SAP datacenter. With the support of virtualized SAP system on x86 and the adoption of virtualization of SAP workload some years ago and new Smart Cloud solutions from IBM the deployment and management of SAP landscapes can be optimized and costs for management can be reduced significantly.