  Cloud computing is an upcoming technology that has been designed for
commercial needs. One of the major issues in cloud computing is the difficulty
to manage federated identities and the trust between the user and the service
providers. This paper focuses on how security can be provided between the user
and the service provider and how the user information can be authenticated. For
the purpose of providing privacy and authentication, Security Assertion Markup
Language (SAML) based Single Sign-On is used. Security is provided by using
Hash based Encryption algorithm (HBE). HBE algorithm works with the help of Key
Exchange Protocol which contains poly hash function. In the algorithm, Identity
providers maintain user directory and authenticates user information; service
provider provides the service to users. The user has to register their details
with the identity provider prior to this. During this stage, Hash based
Encryption algorithm is used to provide secure communication between the
identity provider and the user. In this paper we suggest that higher security
can be given to user login by using an additional cryptographic technique, i.e.
Hash based Encryption algorithm with the help of the Key Exchange Protocol.
