Agile development methodologies are very promising in the software industry. Agile development techniques are very realistic n understanding the fact that requirement in a business environment changes constantly. Agile development processes optimize the opportunity provided by cloud computing by doing software release iteratively and getting user feedback more frequently. The research work, a study on Agile Methods and cloud computing. This paper analyzes the Agile Management and development methods and its benefits with cloud computing. Combining agile development methodology with cloud computing brings the best of both worlds. A business strategy, the outcomes of which optimize profitability revenue and customer satisfaction by organizing around customer segments, fostering customer-satisfying behaviors, and implementing customer-centric processes