Cloud computing is used to provide reliable computing environments and highly scalable resources that can make them accessible to users. Cloud based e-learning offers the real concept of e-learning where the users can access the information at any time and place using any computer technology devices. This paper focuses on the concept and architecture of cloud computing. It highlights the state of the art on the utilization of learning technologies in Libya as well as in other developing countries. The challenges and benefits of implementing cloud based e-learning in developing countries will also be discussed in this paper for the improvement of teaching and learning in higher education institutions in developing countries.