The extent to which cloud computing is being used will only grow; by the end of 2016, it is anticipated that cloud computing will constitute the majority of IT spending. The National Institute of Standards and Technology has defined the model for cloud computing. Generally there are some real trends that are towards a massively scalable computing. The service orientation, the visualization and internet have all converged for sponsoring a phenomenon which will enable the individuals as well as the businesses for choosing and how they can acquire or delivering IT services with no emphasis on its constraints of the licensing models of both hardware and software. The cloud computing based services would encourage delivery and consumption based on the economy that ranges from storage to computation of the video for financial deduction management. Cloud computing is another name given to an existing technology called grid computing and is not entirely a new concept. It has a similar vision like that of decreasing the storage computing cost and providing reliability and flexibility in such a way that computers can autonomously operate. The issues for cloud and grid are almost the same. The cloud computing based services would encourage delivery and consumption based on the economy that ranges from storage to computation of the video for financial deduction management. Cloud computing is another name given to an existing technology called grid computing and is not entirely a new concept. It has a similar vision like that of decreasing the storage computing cost and providing reliability and flexibility in such a way that computers can autonomously operate.