Cloud computing is an advanced technology throughout the world. As cloud computing is based on Internet which is a computer technology. The computer store in the available space and whenever it is requested by the authenticated user it retrieve the stored information. Measures of security that are assumed in the cloud should be made available to the customers for gaining their trust. Steganography is used to hide data. First acquire an image from various sources and will read the required details of an image. After that secret data is read and is converted into integer values. Then it is encrypted and embedded with the cover image with the use of transform method. Security of the embedded data can be enhanced by the steganography model. The main problem with conventional key cryptography is that it is a very hard job to keep symmetric key safe from people other than sender and receiver. The single layered XOR operation based encryption model is considered very weak against several cryptanalysis attacks to decode the encrypted data without using the encryption key. The frequency embedding method has been designed to overcome all such problems.This technique has implemented using Progressive Exponential Clustering algorithm. The performance parameters such as Peak Signal to Noise Ratio (PSNR) and Mean Squared Error (MSE) are used for the result evaluation of the proposed model.