As the use of smart devices is increasing, along with it cloud environment is also expanding rapidly. In today’s time, data is very crucial to users, but somehow the security of user’s data in cloud environment falls short of expectations. So, we need to strengthen the data security in cloud environment; to do so, we are going to use some techniques which will reduce the size of data and will provide end-to-end security to the data. We will be using Huffman encoding which will reduce the data size in a lossless manner and a binary stream processor which will further reduce the size of data. After reducing the size of data, we will encrypt the data and also calculate a digital signature to use it for maintaining the integrity of data. This encrypted data will be embedded inside an image using steganography technique. With each step will enhance the security of data and also results in reduced data size which will make the whole system more efficient.