Recent technological gains have led to the adoption of innovative cloud based solutions in medical imaging field. Once the medical image is acquired, it can be viewed, modified, annotated and shared on many devices. This advancement is mainly due to the introduction of Cloud computing in medical domain. Tissue pathology images are complex and are normally collected at different focal lengths using a microscope. The single whole slide image contains many multi resolution images stored in a pyramidal structure with the highest resolution image at the base and the smallest thumbnail image at the top of the pyramid. Highest resolution image will be used for tissue pathology diagnosis and analysis. Transferring and storing such huge images is a big challenge. Compression is a very useful and effective technique to reduce the size of these images. As pathology images are used for diagnosis, no information can be lost during compression (lossless compression). A novel method of extracting the tissue region and applying lossless compression on this region and lossy compression on the empty regions has been proposed in this paper. The resulting compression ratio along with lossless compression on tissue region is in acceptable range allowing efficient storage and transmission to and from the Cloud.