The article investigates the education system, as the main attribute of the knowledge economy, examines the changes in the education system of Azerbaijan. The samples were presented on the application of innovative technologies in higher education institutions of foreign countries in connection with the transition from traditional education to cloud. The article factors influencing the effectiveness of the cloud system have been considered, as well as the importance of studying the organization, economic bases, and principles of the application of e-learning management systems in educational institutions from methodological, theoretical, and practical sides have been determined. Economic development of cloud technologies, and examples from international experience of changes in the education system has been demonstrated.