Cloud computing is becoming a widely used technology nowadays. It has changed the way the applications and data area accessed. Rather than using personal computer or local server, cloud computing uses network of remote servers which is on the internet to manage, protect, and store. E-learning based on clouds is possible with a certain payment. It requires many hardware and softwares. By the use of cloud, the process of accessing data has changed a lot. E-learning service consumers like colleges and universities have to pay for the quality resources, utilized for actual duration of time. It is in the same way to pay the electricity bills and water bills according to consumption. This paper presents what cloud computing is, the issues concerning the implementation of cloud-based e-learning, and suggests architecture for elearning which can be used by educational institutes as well as by small and medium scale organizations.