Clouds is a distributed object-based operating system designed to support fault tolerance, location independence, and an action/object programming environment. Some of the key issues in supporting Clouds are the availability of object memory, object location, and object recovery. Object memory provides a set of global, persistent, named address spaces for sorting objects. The address spaces resemble conventional segmentation schemes, but are persistent and thus replace both the computational and storage systems used in conventional schemes by a more powerful paradigm. The object location system provides transparent object operation invocation mechanisms throughout the distributed environment. The object recovery system supports recoverable objects through shadowing and two-phase commit techniques to allow atomicity of actions. The key issues in the design and implementation of the object memory and storage management system are briefly described.