We exist in a digital era in which communication is largely based on the transfer of digital knowledge over data networks. Disclosures are sometimes regarded as a transmitter that transmits a digital file. A system of encoding, efficient and easy yet secure model must be developed for quick and prompt transmission. The file is sent from source to destination where it is difficult to maintain the privacy of knowledge. The encryption of images is vital for securing sensitive information or images from unauthorized readers. By using a technique of selective encryption, the original image pixel values are completely obscured in this way and an intruder cannot retrieve statistical data from its original image. This paper introduces a new methodology for the use of a protective facility for the transmission of digital data over the public network. A highly established field with image compression is allowed for speedy transmission and efficient information storage. During the initial process, the original image is divided into blocks of the same size and sub segmentation is performed for accurate extraction of images within the boundaries. A random matrix is used to swap the pixels of the neighboring sub blocks. Afterwards, each pixel is randomly exchanged for the neighboring blocks with a random matrix, then each block is encrypted with the proposed function and then the encrypted data can be stored in cloud. The proposed method uses Image Segmentation based Compression Model with Pixel Interchange Encryption (ISbCPIE) Model for providing high security to the Image transmitted in the network. Compressor is needed to achieve rapid transmission and efficient storage. The proposed model is compared with the traditional models and the results show that the proposed model security levels are better than the existing models.