Abstract: Cloud computing refers to the services that are provided to users in pay as you use style. Cloud computing has various benefits such as flexibility, easy management, easy to expand, cost saver, etc. Cloud computing reduces initial investments as there is no need to invest in devices like hard disks and I/O devices as all the care is taken by the cloud provider. Cloud is a relatively new technology, the development and the use of cloud is still in its early stage. Industries are still hesitant in shifting to cloud in a permanent manner due to various issues and challenges that occurs when shifting to cloud environment. In this study, we will discuss the cloud architecture and the key challenges, issues a user and industry faces inside a cloud environment.