C-DAC's research focus in cloud computing includes design and development of Open source cloud middleware; virtualization and management tools; and end-to-end security solution for the cloud. A number of applications in C-DAC are being migrated to Cloud computing technology. These include hospital information systems, disaster recovery, telemedicine, HPC services, language services (like translation), e-governance applications, etc. Considering the related, but complimentary driving forces of grid and cloud computing disciplines, C-DAC is also exploring integration of grid and cloud computing.

C-DAC has developed a free and open source Cloud suite based on OpenStack named "Meghdoot", for establishing Cloud computing environment.

C-DAC and the OpenStack foundation