Software industry is looking for new methods and opportunities to reduce the project management problems and operational costs. Cloud Computing concept is providing answers to these problems. Cloud Computing is made possible with the availability of high internet bandwidth. Cloud Computing is providing wide range of various services to varied customer base. Cloud Computing has some key elements such as on-demand services, large pool of configurable computing resources and minimal management effort to the users. The software organizations are looking for cloud benefits to address the project management problems.