Cloud computing has been credited with increasing competitiveness through cost reduction, greater flexibility, elasticity and optimal resource utilization. Here are a few situations where cloud computing is used to enhance the ability to achieve business goals. In this paper we have studied on applications of cloud computing in E-Business. Cloud computing is the latest blip -- albeit a big one -- in a trend that included the ill-fated NetPC backed by Oracle CEO Larry Ellison in the 1980s, and more recently by ever more powerful cell phones and mobile devices that combine local storage and smarts with an array of powerful capabilities served up from outside.