1) Legacy IT systems are complex and expensive to maintain, and budgets are capped while needs increase. This leads to overcapacity in systems. 2) Cloud computing promises to address these problems by distributing systems, allowing for real-time scalability, and reducing costs. However, moving everything to the cloud is not possible and operational expenses can actually increase with cloud complexity. 3) Automating IT operations is presented as the solution to compensate for increased cloud operational costs. With automation, dynamic scaling, distribution and changes in cloud environments can be managed, unlocking more of the potential of cloud computing.