This is the first in a series of reports by Appledore on policy. It covers an introduction to policy; its scope today; how and why it must change; the new demands imparted by virtualization; the likely future environment; challenges and technical issues; status of policy in the Telco Cloud and related domains; and derives recommendations for CSPs and suppliers. Until recently, policy has been narrowly associated with the control of bandwidth flows in IP/packet networks. However, as networks evolve from physical instances to virtual instances, and as network abstraction becomes more commonplace, the scope of policy will increase dramatically –controlling parameters as diverse as flow characteristics, quality, availability, scale, security, location, as well as governing business parameters. Appledore believes that effective policy control will be essential to delivering the mass customization, agility, and cost savings that operators require.