Cloud computing is a new form of technology which encompasses infrastructure services, platform and server development, provision of software applications and provision of facilities for users. Part of the significance of this study relates to the services and external and strategic solutions that cloud computing makes available for data and information agencies – solutions that can be drawn upon in developing and enhancing those agencies. The study seeks to investigate the different safety issues that hinder the use of cloud computing by companies, organizations and libraries. Based on an identification of obstacles facing cloud computing, the study also seeks to develop a mechanism for protecting data stored or shared using cloud computing.