When it comes to cloud we think of servers as applicances. We hardly ever fix them. If they break we throw them away and turn up another. As I said above, no data is stored on them. We also built "factory reset" into our automation that allows us to return servers to how they were configured when we first built them as a means to control drift (which is minimal since noone ever logs into the servers).
This automation and tool set are now transitioning to our internal data center. We are building out a "cloud" infrastructure that will allow us to treat internal servers as appliances as well. That way, we have a choice between public and private cloud when provisioning servers (lower cost/security vs. higher cost/security).
I know cloud is a buzz word for the consultants and marketers but Sys Admins (and developers as well) need to look beyond that and see the potential.