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Cloud Computing is a computing paradigm which has made high-performance computing accessible even to SMEs (small and medium enterprises). It provides various types of services to the users in the form of hardware, software, application platforms. The cloud computing environment is elastic and heterogeneous in nature. Any number of users may join/leave the system at any point of time; it means the workload of the system increases/decreases randomly. Therefore, there is a requirement for a load balancing system which must ensure that the load of the system is fairly distributed among the nodes of the system and aims to achieve minimum completion time and maximum resource utilization. The paper presents a load balancing algorithm based on processing capacities of virtual machines (VMs) in cloud computing. It analyses the algorithm and finds the research gap. It also proposes the future work …