Cloud computing is a set of IT services that are supplied to a customer over a network and with the ability to scale up or fine-tune their service demands. Cloud computing services are rendered by a third party provider who has the infrastructure. Its advantages include scalability, resilience, flexibility, efficiency and outsourcing non-core activities. Cloud computing offers a modern business model for governing bodies to take over IT services without upfront investment. Instate of the probable gains achieved from the cloud computing, due to security events and challenges associated with the organizations are slow in accepting it.