This document discusses security issues in cloud computing and proposes a solution using authentication and encryption. It first describes common cloud deployment models and layers. It then discusses major security concerns like privacy, confidentiality and data integrity. The proposed solution uses EAP-CHAP for authentication and the Rijndael encryption algorithm to encrypt user data at rest and in transit in the cloud, providing security while allowing authorized access. The methodology describes authentication using EAP-CHAP and encryption/decryption of data using Rijndael before it is sent to or retrieved from the cloud.