ERAC leverages on the documented excellence of the research group on interconnection networks and cluster computing at Simula. In close collaboration, Oracle, Lyse, Simula, the University of Oslo, and the University of Stavanger will build world-class re search-based competence in core areas of cloud computing that will form the backbone for services and applications in the future Internet. The selected core areas are carefully aligned with the needs and the strategy of the contributing industrial partner s and the following scientific priority areas in VERDIKT: (i) communication technology and infrastructure, (ii) security, privacy, protection and vulnerability.The consortium will focus on selected problem areas where current technology is not well suit ed to meet the promise of cloud computing: rapid elasticity, massive scale, resilient computing, virtualization, ease-of-use and energy efficiency. These are areas of vital importance for realizing the potential of cloud computing where there are signific ant architectural and technological challenges that must be resolved.The project will strengthen the national knowledge base in several ways. First, it will create a community of cutting-edge expertise on cloud computing with members from both academia and industry. Second, it will develop several cloud computing experts through the education of doctoral candidates and through the expansion of knowledge for established researchers. Third, it will contribute with one or more educational courses to the so on to be established educational program on cloud computing at Ifi/UiO. In the long term this promotes Norwegian leadership in the selected areas of the segment.