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Enabled by server virtualization, cloud computing is rapidly changing the fundamentals of today’s predominantly on-premise virtual labs. In the next generation, this on-premise virtual lab infrastructure can and will be seamlessly integrated with, and extended to, public cloud infrastructures. IT operations managers and administrators can now easily and seamlessly extend virtual lab requirements to the cloud, based on varying internal demand (for various functions like development/test, support, training and pre-sales demos). This presentation will discuss key consideration areas for IT operation managers adopting or evaluating this approach – including security, the business model benefits of the public cloud infrastructure, operational flexibility and user access models.