Cloud computing has been considered as the architectural model for future generation Information Technology. Inspite of its numerous advantages in both technical and business aspects, cloud computing still poses new challenges particularly in data storage security. The main threat here is trustworthiness. Data centers which power a cloud cannot perform computations on encrypted data stored on cloud. With the advances in homomorphic encryption techniques, data stored in cloud can be analyzed without decryption of the entire data. This paper discusses about various homomorphic encryption schemes and their applications on various domains. A homomorphic method with byte level homomorphism has been proposed.