Since the world of information technology is fully depend upon the data provided by internet. There is variety of services available to supply data and information anytime, anywhere and from any devices. This nature of availability of data from variety of sources paved way for the growth of current computing trends such cloud computing and service oriented architecture. But still people are unsure what is the difference between and cloud computing. Here in this paper present a clear understanding between the differences, working nature, data storage, accessibility and finally the user reputation. The cloud will enable real-time delivery of products, services and solutions over the Internet. It will become essential to business because of its capability to deal with rapid change in external markets.