VMWare Private Cloud sounds quirky

Private Cloud

VMWare Private Cloud computing, now that sounds quirky, using VMWare for a cloud is bizarre and seems to me like the upside down solution. Why should a company invest in a virtualization solution and then go and turn it into a cloud computer?

What are the advantages especially in ROI and utilization?
I can understand the need in expandable resources in the IT and the ability to provide space as service and so on but, wasn’t private cloud computing suppose to be getting us as close as you can to the bare bone? Supplying us with on demand processing/storage? so how will be a VM able to supply me with exactly that when we know that a VM adds a layer to the hardware.
May be the target is different, some old esx servers are available in many places and make decent sense to become a part of a cloud computing. If that is the case why not have a Ubuntu eucalyptus implementation instead of the VMWare proprietary solution enabling you running on VMWare and normal machines.
Why turn to this very proprietary solution?
That beats me.
I hold the thought that if you are an organization you should deploy something useful that is expandable across the whole infrastructure and operates indifferently of the hardware.
I guess that the guys in VMWare were just trying to hook the people already involved with them to make the move to a familiar environment and justify the cost to the board.
Some claim that the Amazon is hosting in a Virtualized environment for their EC2 and that might be the case, and amazon do place you in a position to buy your computational supply in chunks called Virtualized servers.
AS got discovered by Peter Wayner on InfoWorld

After a few hours, the fog of hype starts to lift and it becomes apparent that the clouds are pretty much shared servers just as the Greek gods are filled with the same flaws as earthbound humans. Yes, these services let you pull more CPU cycles from thin air whenever demand appears, but they can’t solve the deepest problems that make it hard for applications to scale gracefully.

So may be the VMWare solution is better/similar to other solution?
I return to the previous problem I have with running a VM to support a real-time need of CPU cycles and the investment in Virtualized environments to create these computers.
When google lashed at VMWare they had the same argument

In the virtualization approach of private data centers, a company takes a server and subdivides it into many servers to increase efficiency. We do the opposite by taking a large set of low cost commodity systems and tying them together into one large supercomputer.

This in turn ties both of my problems with the VMWare implementation together to a one coherent issue with virtualised clouds. The increase in efficiency is coming with a cost of having to buy dedicated hardware and jeopardise the performance with the added VMWare layer.
I can understand the need for a Private Cloud and the ability to stretch resources to the organization on demand making the production environment stable and flexible but I think that the solution is not a VMWare one.
The VMWare solution will appeal to the avid VMWare professional who wants to keep his job easy and not learn new tricks.
If I was an organization COO/CTO that needed to recommend on a solution to our private network I would have chased the Eucalyptus Ubuntu solution or the Enomaly solution from Reuven Cohen, thus utilising those old Pentium 4 that are being decommissioned to supply my organisation with more breathability, especially with the shrinking IT budgets that are now so common.
What do you think! Do you see a cloud without virtualization?

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