The “Virtualization and Cloud Computing” is a recent buzzword in the digital world. Behind this fancy poetic phrase there lies a true picture of future computing for both in technical and social perspective. Though the “Virtualization and Cloud Computing are recent but the idea of centralizing computation and storage in distributed data centres maintained by any third party companies is not new but it came in way back in 1990s along with distributed computing approaches like grid computing, Clustering and Network load Balancing. Cloud computing provide IT as a service to the users on-demand basis. This service has greater flexibility, availability, reliability and scalability with utility computing model. This new concept of computing has an immense potential in it to be used in the field of e-governance and in the overall IT development perspective in developing countries like Bangladesh.