It is by now a truism that most IT organizations are planning an IT infrastructure strategy that includes cloud computing and that an internal cloud (aka private cloud) is a fundamental part of that strategy.
While trying to avoid getting sucked into the vortex that is defining cloud computing, I think it's safe to say that a cloud computing environment includes the ability for IT resource consumers like application developers to self-service resource requests, along with automated provisioning (aka orchestration) of computing resources like virtual servers, network connectivity, and storage. The mere deployment of virtualization enabling support of multiple virtual servers on a single physical server, while admirable and useful in itself, is not cloud computing.
In talking to a number of informed people, it's clear that private cloud implementations are moving forward in many organizations, with RFPs to vendors out with an aim of contract award in 2011 and implementation in 2012.
More of the NetworkWorld article from Bernard Golden