By embracing cloud computing for application development and testing use cases, organizations are not only finding an easier way to take advantage of cloud computing, they are also realizing important benefits. Though the list of benefits makes cloud adoption seem like a no-brainer, there are concerns about how an organization should approach this endeavor. A limited number of environments should be quite easy to manage. However, as more and more projects ramp up, things can get out of hand. Being able to move rapidly only pays off when the organization is moving in the right direction. Consequently, it is advisable to have a vision for cloud computing and an IT strategy for achieving that vision. This white paper outlines several topics that pertain to establishing a strategy for cloud based development and testing.