Implementing Policy in the Virtual Environment and Cloud

When you read books on virtualization, cloud computing, security, or software product sheets a common word that shows up is Policy. Tools often claim to implement Policy, while books urge you to read or write your Policy. But what does Policy imply?
Webster (webster.com) defines policy as:
1 a : prudence or wisdom in the management of affairs b : management or procedure based primarily on material interest
2 a : a definite course or method of action selected from among alternatives and in light of given conditions to guide and determine present and future decisions b : a high-level overall plan embracing the general goals and acceptable procedures especially of a governmental body
When you read policy in product literature and books we are looking at definition number 2 and often a over b. But what does this mean to those who administer and run virtual environments or make use of cloud services?

Is Hyper9 a good fit for the SMB?

I talked extensively to Hyper9 to determine if their product would be a good fit for the SMB as most of their marketing literature is geared towards helping to manage thousands of VMs not necessarily 100s of VMs. My thoughts before talking to them is yes it would be useful, but after talking to them, I discovered some key facts that would help an SMB decide on whether or not to invest in Hyper9 which is a tool to allow you to query the VMware virtual environment for issues as well as general information.