Recent innovations in ICT developments such as Cloud Computing and Virtual Organisation (VO) have radically transformed the nature of the marketplace and how organisations operate and strategize so as to thrive and sustain their competitiveness in the digital marketplace. VO system is enabled by a highly effective and efficient Information System (IS) management under the supporting platforms of high performance ICT infrastructure and environment such as the Cloud. Organisations could leverage the enormous provisions and benefits of cloud computing to ensure a virtual collaborative platform for effective and efficient global participation, visibility and competitiveness in order to survive and boom. This research in readiness for this emerging virtual world models a novel framework of cloud-based VO which is a hybrid of the framework developed by Hales (2005), and the Cloud delivery model of IBM (IBM research, 2011) based on Cretu (2012) Cloud VO concept. Further challenges which emanated in the field work led to a proposed mathematical model, and the design and development of a cryptographically- Secure Software as a Service (SaaS) solutions of this research.