Cloud computing is the future of computing. What makes it stand apart is the fact that everything including data and applications are stored on the cloud itself and are accessible through an Internet connection and a web browser. Integrated Development Environment (IDE) which is used for coding and developing applications can be a software on the cloud. The aim of this paper is to convey the idea of Cloud based IDE for the Java language which will have the features to write, compile, run and test code on the cloud. This software will permit easy development of Java applications. It will provide sharing of code and real time collaboration with peers. It will also have an integrated forum and a technical blog. This can be used by the developers who require instant help related to coding Java applications. This software can be used instead of or alongside a desktop IDE. The only requirement for accessing and using this application is a web browser and an Internet connection. This eliminates hardware and operating system issues thus allowing people with different hardware and heterogeneous operating systems to collaborate and code with ease. It also eliminates the need to use conventional devices like desktops or laptops to code programs by allowing the users to access this IDE from various devices like smart phones that have an Internet connection.