Abstract: In recent computing trends where processing capabilities, storage capacity, automation for computing, etc. are increasing rapidly as per demand, cloud computing emerges as a forerunner for such type of processing environment. Cloud computing is a network-based computing paradigm which maintains a huge pool of computing resources. Access to such computing resources is open to demanding users through internet. The distribution and flexibility of cloud environment makes it one of the best distributed computing environments. Services offered by a cloud service provider are charged as per their use by end-user while at any instance users can hold or release number of services. This study deals with the important concepts of cloud computing, issues, some important terminologies of cloud computing and shows how cloud computing is effective for future computing trend shifts.