Cloud is an emerging style of Information Technology infrastructure designed for rapid delivery of computing resources. Business or consumer services are delivered in a simplified manner, providing unbounded scale, differentiated quality, and with a user focus designed to foster rapid innovation and efficient decision making. Cloud computing is a potentially cost-efficient model for provisioning processes, applications and services while making IT management easier and more responsive to the needs of the business. These services - computation services, storage services, networking services, whatever is needed - are delivered and made available in a simplified way - "on demand" regardless of where the user is or the type of device they're using. Security is a major concern in this domain. Security has become a research area in this field involving both academic and industrial communities. This paper describes multilevel cryptography technique for data encryption and decryption using graceful codes. © 2012 Springer-Verlag.