Cloud computing has a lot in common with longstanding forms of outsourced data processing services. There are some key differences, however, and these differences need to be appreciated. The expertise that user organizations have garnered from these older practices will serve them well in harnessing cloud computing, but it is advisable to extend that expertise. The potential benefits need to be sifted through, and measures need to be put in place to ensure that the full potential of cloud computing is realized.