Cloud Computing is a term used to describe both a platform and type of application. As a platform it supplies, configures and reconfigures servers, while the servers can be physical machines or virtual machines. Cloud computing has emerged as an important evolution in the way the organization and individuals consume and operate computing. Cloud computing services are delivered by a third party provider who owns the infrastructure. Cloud computing is also considered a good platform to boost \"Thin computing\". This paper discusses about the characteristics of cloud computing, deadlock characteristics and also discusses the implementation of banker's algorithm.