Cloud computing technology is gaining great popularity as a technological enabler for different types of organisations. It offers a great deal of benefits with respect to its pay-as-you-go elasticity and capability to scale. Due to the increasing demand for cloud-based solutions, many challenges have appeared and some of them are constraints to what the technology can potentially offer. Energy efficiency is considered one of the main challenges for cloud computing technologies. This research aims to investigate the power consumption issues in current cloud computing implementations. It also proposes a new concept to find out potential trade-off solutions between energy efficiency and performance using a policy-based network management approach.