This document reviews the use of cloud computing for transportation systems. It discusses the history of transportation management systems, from mainframes to current cloud-based approaches. Agent-based traffic management systems are described, including the Adapts hierarchical urban traffic management system. Challenges of agent distribution and performance testing are outlined. Future systems require vast computing power and storage, which cloud computing can provide through services like MapReduce, Amazon EC2 and IBM Blue Cloud. A prototype intelligent traffic cloud is proposed, with roles of service providers and customers, and a four-layer architecture including applications, platforms, unified sources and fabric.