Cloud computing is the acclaimed word in Information Technology’s world. It is becoming very famous day by day. It is the fifth generation of the internet. Cloud computing helps IT business to transform power of computing in a smart, efficient, high performance way to solicit with their business solution. In this paper we analyse and highlight the concept of the cloud computing like service model, virtue of cloud computing, contingency of cloud and application. This paper will help in better understanding of cloud computing and explain how it works. It also discusses the different application that use in computing model as a platform for execution. Cloud is an extend of grid computing, distributed computing, and parallel computing where everything will be serving as service. Information Technology is migrating to cloud computing as it is diminishing their capital investment, data centre space and also helps them to concentrate mainly on their resource utilization activities as cloud computing provide resource as a service to their customers not as a product or software. The fundamental Concept of cloud computing is that the computing is “in the cloud”.