The essence of cloud computing is moving out the processing from the local systems to remote systems. Cloud is an umbrella of physical/virtual services/resources easily accessible over the internet. With more companies adopting cloud either fully through public cloud or hybrid model, the challenges in maintaining a cloud capable infrastructure is also increasing. About 42% of CTOs say that security is their main concern for moving into cloud. Another problem, which is mainly problem with infrastructure, is the connectivity issue. The datacenter could be considered as the backbone of cloud computing architecture. Handling this new generation of requirements of volume, variety, and velocity in IoT data requires us to evaluate the tools and technologies. As the processing power and storage capabilities of the end devices like mobile phones, routers, sensor hubs improve, we can increase leverage these resources to improve your quality and reliability of services. Applications of fog computing is as diverse as IoT and cloud computing itself. What IoT and fog computing have in common is to monitor and analyse real-time data from network connected things and acting on them. Machine-to-machine coordination or human-machine interaction can be a part of this action. This chapter explores fog computing and virtualization.