This report provides an overview of the issues and challenges associated with cloud computing. It begins by defining cloud computing as an on-demand network access model offering various configurable resources, including servers, networks, applications, and storage. The report outlines the three primary service models: Software as a Service (SaaS), Platform as a Service (PaaS), and Infrastructure as a Service (IaaS). The core of the report focuses on the challenges, including security concerns, high costs, issues with Service Level Agreements (SLAs), and the complexities of service migration. Further challenges highlighted include interoperability problems, the difficulties in developing cloud ecosystems, and the impact of proprietary cloud APIs. The report concludes with a list of relevant references to support its findings.