This document discusses cloud computing and the foundation technologies required to support it. It defines cloud computing as a new IT consumption and delivery model that provides users flexibility, lower costs, rapid provisioning of resources, and sharing. For suppliers it improves economics through standardization and automation. The document outlines the layers of cloud computing from Infrastructure as a Service to Business Process as a Service. It focuses on the foundation technologies required including virtualization, image management, resource management, and isolation/connectivity management. IBM Research is working on automated tools for image creation and composition, scalable image maintenance services, image analytics, VM placement and power management to advance these foundation technologies.