Cloud computing provides on-demand access to shared computing resources like networks, servers, storage, applications and services. While it offers advantages like flexibility and cost savings, security is a major concern due to issues like loss of physical control of data and systems, multi-tenancy, and the complexity of massive cloud systems. Key challenges include isolation management between tenants, data encryption, disaster recovery planning and secure virtualization. Organizations should plan for security, encrypt data, backup regularly, audit systems and sandbox applications to help address risks in the cloud.