A discrete event simulator, CLOURAM: CLOUD Risk Assessor and Manager, algorithmically estimates the risk indices in modern-day CLOUD computing scenarios with tangible risk management targets that are favorable to the intractably tedious, theoretical Markov solutions or hand calculations overly limited in scope. The goal is to improve the operational quality of CLOUD by optimizing the number of servers for capacity addition and optimizing the final repair crew count. We too optimize the server unit repair rates, and the consumer load cycle by curbing the demand using Linear Programming (LP)-based optimization with the proper objective functions and constraints. Small and large CLOUD systems are simulated with cost and benefit comparisons. The 2-state (UP and DN) or 3-State (UP, DN, and DER) units statistically fail and recover with Negative Exponential or Weibull densities. This article is categorized under: Statistical and Graphical Methods of Data Analysis > Reliability, Survivability, and Quality Control Algorithms and Computational Methods > Networks and Security Statistical Models > Simulation Models Algorithms and Computational Methods > Linear Programming 1 | INTRODUCTIONThe fundamental idea of CLOUD computing is an internet-based, pragmatic, business-savvy data processing solution ( Figure A1). The model's central idea for on-demand access to a shared pool of resources is to utilize these just-in-time resources instead of depending on local servers or devices to run applications or provide data access. These networks cannot be effectively created without reliable and secure software and infrastructure to actively generate risk-free applications. CLOUD computing, a paradigm of a business model using services provided through the Internet of Things (IOT) has progressed as an alternative to the traditional in-house IT computing services A quantitative assessment of the Quality of Service (QoS) in such enterprises is very much needed. CLOUD computing's QoS can be difficult to measure, not only qualitatively but, most importantly, quantitatively, that is, index-based. However, as users turn to CLOUD computing services for their commercial operations, there is a growing concern from security, privacy, and reliability perspectives. Algorithmic, discrete event-simulated, cost-benefit analyses are reviewed to estimate the reliability indices of small or large service-based CLOUD systems to mimic real-life scenarios (Sahinoglu & Cueva-Parra, 2011).The federal government has approved use of commercial CLOUD products (Leavitt, 2009). Operating in a CLOUD environment, there is an expected level of service to be provided by the environment. This is called the service capacity. This could be Virtual Machine (VM), bandwidth, computing speed, or storage in GB or TB (Terabyte = 2 40 bytes), which the