There is great excitement about the cloud; however, it is important to conduct a full assessment as part of the Cloud Transition. It is very important to decide which applications will be moving to the cloud based on factors such as alignment with business requirements, cost savings, level of effort, available resources, benefits of the new solution, risks etc to determine business and functional benefits. Architecture and security aspects need to be thoroughly assessed, and factors such as interoperability, reliability, portability, storage, data transfer, sensitivity of data have to be evaluated. The initial and projected cost implications for services have to be monitored regularly since services that are cost effective initially may end up being more expensive down the road as more users are brought on board. As part of the assessment of cloud vendors, technology and cost aspects need to be looked into carefully and expectations should be documented in the service level agreements.