Cloud computing - the new paradigm, the future for IT consumer utility, the economy of scale approach, the illusion of un infinite resources availability, yet the debate over security and privacy issues is still undergoing and a common policy framework is missing. Research confirms that users are concern when presented with scenarios in which companies may put their data to uses of which they may not be aware. Therefore, privacy and security should be considered at every stage of a system design whereas advantages and disadvantages should be rated and compared to internal and external factors once a company or a person decides to go into the business of cloud computing or become just an user.