Recommender system is an important content in the research of E-commerce technology. Collaborative filtering recom-mendation algorithm has already been used successfully at recom-mender system. However,with the development of E-commerce,the difficulties of the extreme sparsity of user rating data have become more and more severe. Based on the traditional similarity measuring methods,we introduce the cloud model and combine it with the item-based collaborative filtering recommendation algorithms. The new collaborative filtering recommendation algorithm based on item and cloud model (IC-Based CF) computes the similarity de-gree between items by comparing the statistical characteristic of items. The experimental results show that this method can improve the performance of the present item-based collaborative filtering algorithm with extreme sparsity of data.