Cloud computing are the modern way of staring data and other important resources the company wants to retrieve safely and conveniently. It offers an innovative way of investment especially to start up enterprises and adopt IT operations without high upfront costs. Despite its potential, cloud computing is affected by various security issues. These include account highjacking, data breaches, malware injection, data recovery, wicked inside attackers, segregation of data, lack of investigative support and shared vulnerabilities. The challenges facing cloud computing include security and privacy, application issues, accessibility, continuous evolvement, interoperability issues, service level agreements and data center issues.