The term “cloud” is analyzed to “Internet”. The term “Cloud computing” is based on cloud drawings used in the past to represent telephone networks and later to depict internet. Cloud computing is a internet based computing where virtual shared servers provide software, infrastructure, platform, devices and other resources and hosting to customers on a pay-as-you basis. All information that a digitized system has to offer is a provided as a service in the cloud computing model. Users can access these services available on the “Internet cloud” without having any previous know - how on managingthe resources involved. Cloud computing is a computing model not a technology. In this model customers plug into the “cloud” to access IT resources which are price and provided “on demand”.Cloud computing is a style of computing where massively scalable IT related capabilities are provided “as a service” to external customers using internet technologies. Virtualization is the ability to run multiple OS (software’s) on a single physical systems and share the underlying a hardware resources. Cloud computing provide services which are mainly of an OS running on a single virtualized computing environment with middleware layers that attempt to combine physical and virtualized resources from multiple OS and specialized application engines. This paper, we discuss about the virtual distributed OS. Cloud OS, which provide the maximum features cloud computing by using c panel. The cloud OS works on the principles layout by LINUX. The cloud OS aims to provide a simple programming abstraction to available cloud resources, strong isolation techniquesbetween cloud processes and strong integration with network resources.