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Cloud computing is a technology where data and different applications are stored on storage networks and servers which are located in a remote place and accessed by the users via the Internet. This technology of cloud computing allows businesses and consumers to get access to applications without the need of installing them on their own on-site servers. The applications are installed on remote servers. In the normal way of applications use, consumers purchase licenses for application software from their software provider and install them on their on-site servers. In cloud computing case, it is On Demand basis where consumers pay a subscription fee for the service. The use of this technology increases efficiency because the storage, memory and processing are centralized. For one to understand the security of a database on a LAN and WAN, knowledge of cloud computing characteristics is of paramount significance. This technology involves sending services which have been hosted through the Internet. Cloud computing would be useless without the technologies like Web 2.0, Software as a Service (SaaS), and Data as a Service (DaaS). These technologies have made cloud computing a success (Cleveland, 2009). The main aim of cloud computing is to change the paradigm to another shift so that computing could get a new meaning; information technology moved from desktop applications to getting services which are hosted in the cloud. There is a difference between cloud computing and cloud services where the latter involves a case where services are delivered over the Internet real-time. Cloud computing is a technology where data and different applications are stored on storage networks and servers which are located in a remote place and accessed by the users via the Internet. This technology of cloud computing allows businesses and consumers to get access to applications without the need of installing them on their own on-site servers. The applications are installed on remote servers. In the normal way of applications use, consumers purchase licenses for application software from their software provider and install them on their on-site servers. In cloud computing case, it is On Demand basis where consumers pay a subscription fee for the service. The use of this technology increases efficiency because the storage, memory and processing are centralized. There are three types of cloud computing. The first is the Software as a service (SaaS). This is the cloud computing type where applications are installed on the remote servers and then offered to the consumer as a service. A single instance of the application software is set to run on the cloud and serves multiple users or organizations. In the traditional software use, users would purchase the license and install them on their on-site servers. With cloud computing, the end-user will pay for the service as he uses it. The second type of cloud computing is the Platform as a service (PaaS). Most companies started by providing SaaS to the end-users. Most of these companies have also started developing platform services for the end-users. In PaaS, products are provided to enable applications to be deployed on the end-users. Platforms act as an interface to enable users to get access to applications which are provided by partners or by customers. Some of the big players in this cloud computing industry like Microsoft, Google and Amazon have provided platforms which include Windows Live for Microsoft, Apps Engine for Google and EC2 for Amazon. Providers like Amazon, Google, and Microsoft have developed platforms which enable users to gain access to applications stored on centralized servers.