Different contemporary organisations are using cloud computing application in business operation activities to gain competitive advantages over other competitors. It also helps in promoting flexibility of the business operation activities. Cloud computing involves delivery of different computer resources to data centres over the internet services. Different kinds of delivered computer resources include data storage, servers, database, analytics, software, networking, and other types of data applications etc. In this present era of data breaches, cloud computing ensures security protocols to protect different kinds of sensitive transaction data and confidential information. Use of cloud computing ensures that a third party individual does not tamper the data. Use of cloud computing also provides different kinds of competitive advantages to the organisations. Cloud computing also helps in providing efficiency and a platform for innovation for the contemporary organisations. Theoretical frameworks are usedin the literature review section to determine the important roles of cloud computing in effective data and security management in the organisations. It is also justified in the research work that qualitative methodology is suitable for the researcher to meet the developed research objectives. A secondary data analysis approach has been considered by the researcher in this study to carry out the investigation and meet the developed objectives. From the findings, few challenges associated with the cloud computing system have been identified. Proper recommendations are suggested at the end of the study to help future researchers in overcoming the identified associated challenges.