[Timothycquinn]

Agreed, private cloud systems that leverage OS level virtualization like Joyent's solution is completely production ready from a software perspective. IMO, the biggest challenge past getting CTO approval is finding production 24/7 support for the complete stack.

For SMB private clouds, its a no-brainer; I just buy a FreeNAS or TrueNAS box (FreeBSD based) from iXSystems and have them customize the box for extra ram and CPU. You get ZFS, DTrace and a wicked NAS, OS level virtualization with jails and even linux binary support if required. I've done this successfully in production and could not be happier.

Note: I don't work for iXSystems but I do love their products and services.