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Cloud computing is a new technology in which computing resources are made available to the users and provider charges certain amount for its services. Just like an electricity bill, telephone bill payment is made on the basics of usage of resources. Services are made available to the customers and implementation details are hidden from the end user. Pools of resources are managed by the cloud owner to provide services to the customer. These pools of resources must be managed for providing better quality of service. As over utilization of resources effects service quality and under-utilization of resources results higher cost as well as wastage of computing resources. In reality there is always a tradeoff between amount of resources used and quality of service.