Cloud computing is a computing paradigm, where a large pool of systems are connected in private or public networks, to provide dynamically scalable infrastructure for application, data and file storage. With the advent of this technology, the cost of computation, application hosting, content storage and delivery is reduced significantly. Cloud computing is a practical approach to experience direct cost benefits and it has the potential to transform a data center from a capital-intensive set up to a variable priced environment. The idea of cloud computing is based on a very fundamental principal of „reusability of IT capabilities’. The difference that cloud computing brings compared to traditional concepts of “grid computing”, “distributed computing”, “utility computing”, or “autonomic computing” is to broaden horizons across organizational boundaries.