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These days Cloud Computing is in demand and the latest technology used by the organisation to handle large amount of data. This paper will explain the concept of Cloud Computing, its models, advantages, disadvantages and also the challenges. The type of testing use for cloud computing will also be discussed in this paper. The organisations may have their own cloud data centre or also can tie up with other data service providers who provides the facility of cloud computing. The data is shared among various servers and then can be accessed from there. It helps to increase the efficiency of the business organisation.