The advances in web-based technologies is changing the way we work and interact. These changes are also stirring the approach government interacts and associates with citizens, businesses, employees and keeping affiliations with other local or federal governments. Governments have strained and still incessantly pondering on the methodologies to improve these interactions and deploy services (called e-services), though, faced numerous challenges in developing and implementing web-based technologies. Apart, these technologies were expensive in terms of labor cost and consumes enormous capital investments. Advent of cloud computing helped the governments sought the issues, as usage of cloud computing reduces IT labor cost by 50% and improves capital utilization by 75%. Even after spotting the benefits of using and deploying services in cloud, governments have been slower in appreciating the profits of cloud computing. The main causes for this cynical approach are security and data protection. The paper conducts the risk valuation for employing e-services in cloud computing architecture and ascertains the types of risks allied. The study will assist as guideline for government departments to implement e-services on cloud models.