Cloud computing became quite a mature technology and is being adopted for every kind of applications in the real world; video transcoding is one of them. Cloud computing is the collection of computing resources that can only access via digital network like WAN, Internet etc. The users may access the computing resources by using computer, tablet, notebook, smart phone, pad computer or other devices. The cloud server provides and manages the applications and also storing the data remotely in cloud. User interaction and integration of video files using computers, networks, cellular mobiles, Internet TV, iPod and other PDA are becoming more important tasks in research due to the increased number of distinct video formats. This paper expresses the brief introduction of cloud computing and its current trends for video transcoding. We have proposed the solution that how video transcoding becomes smart and speeds-up due to the efficiency of cloud computing.