Cloud Computing means accessing the data from their own datacenters such that the chances of eavesdropping have been reduced and storage cost is reduced. A honey pot is a computer system on the Internet that is expressly set up to attract and "trap" people who attempt to penetrate other people's computer systems. Honeypots are systems used to trap, monitor, and identify erroneous requests within a network. Honeypots using various cloud computing platforms (such as Amazon EC2, Windows Azure etc.) with the objective of learning more about what kind of packets they receive. Honeypots are not always designed to identify hackers. Honeypot developers are often more interested in getting into the minds of hackers, which then permits them to design more secure systems, as well as to educate other professionals about the lessons learned through their efforts. Honeypots are designed to purposely engage and deceive hackers and identify malicious activities performed over the Internet. Honeypots are considered an effective method to track hacker behavior and heighten the effectiveness of computer security tools.