Virtual Computers
No need today to worry about moving to the cloud. Everything I am working on today is on hardware I can physically see.
At some point it may be necesary to switch to VM installations in order to support customer sites, but at present, the overheads ( such as time to learn how to do it! ) outway the advantages. We can see the advantage where we need to test against multiple versions of operating systems, but our workstation machines interact closely with various propriatory hardware add-ons which are still OS specific and any server is only required to provide a Firebird/Apache/PHP stack.
When time permits we will investigate further.
VMWare one of the places to go but not needed now.
Tech Solutions Blog on experiances implementing it (Link is dead)