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Education is to be affordable and able to reach the mass at an affordable cost. An E-learning platform based on open standards with minimum initial cost of investment, will be able to educate people to achieve knowledge based economy. The current E-learning platforms require high initial cost on the infrastructure and software applications. Adoption of cloud computing can help, educational institutions to reduce expenditure on infrastructure, software and human resources to a considerable extent. The authors focus on the current e-learning architecture model and issues in current e-learning applications. The paper also discusses cloud computing concepts, and analyse advantages for adopting cloud computing. A model for e-learning applications based on cloud computing is proposed.