The cloud computing is the latest buzz word in the hosting world. Application service providers and ISPs are upbeat on the new developments. The cloud computing for a new user, is the new version of virtualization. Earlier versions supported several instances of VM Ware setups which can be given to client. In all the cases, a big server is partitioned in such a way that clients can add or remove the space and RAM depending upon their requirements. The cloud computing is supposed to make big difference. There are many big players which are now testing the feasibility of such methods. The clients are going to like the way the pricing is going to drop. They would not require to pay for complete server. They would be able to just order and pay for what they need. If the requirements grow in future, they can upgrade the space and RAM easily because it would be available in the server under open-pool for all. IBM has invested efforts in developing the standards over the open source platform.