In the area of cloud computing, the word cloud is used as metaphor for "The internet". The phrase cloud computing means a type of internet based computing where different services such as servers, storage and applications are delivered to an organizations. In this paper, the authors deal with the problem of duplication of files. Security is also provided to the original file by the way of encryption. Eliminating duplication of files helps in reducing the storage space and saves bandwidth during file transfer, to protect the sensitive data. The encryption technique is used for encrypt the data before storing in cloud.