Most small businesses are likely already using the cloud for email and file storage. Google Drive, OneDrive, Microsoft Outlook and Gmail are examples of cloud services. But email and file storage aren’t all the cloud can do. Cloud computing for small businesses can offer a raft of applications that increase flexibility, agility, and scalability.
Use Cases
According to Atlassian, 67% of small businesses that migrated to the cloud did so to eliminate manual upgrades. It’s an excellent solution for companies with a tech teach of one or none since it takes a cumbersome task of their plate.
Security is also a big reason small businesses migrate to the cloud. For the same reason eliminating manual upgrades is a boon, relying on larger cloud companies for security and version upgrades is an attractive option.
Full-scale migration is just one of ways a small business can use the cloud, though.
Backup and recovery is one of the most significant services the cloud can offer small businesses. It enables them to use large reserves of storage and hands the responsibility of securing their data and complying with applicable laws to the cloud service provider. Most importantly, backup-as-a-service companies automatically create backups and make them available on demand in case of local data loss.
Communication is another key reason small businesses invest in the cloud. Applications like Slack and Microsoft Teams enable remote employees to stay in touch and on the same page. That’s critical to staying productive and maintaining a sense of connection among a distributed staff.
It’s clear cloud computing enables a world of possibilities. However, there can be too much of a good thing.
When considering adopting the cloud for small business, the main things to think about should be budget, need, and risk.
| Vendor | Example Plan | Cost Per User/Month | Notable Features |
| Google Workspace | Starter | $7 | Custom email, Drive, Docs, Sheets, 30GB pooled storage |
| Microsoft 365 | Business Basic | $6 | Outlook, OneDrive, Teams, 1TB storage per team member |
| Box | Business | $15 | Unlimited storage, 1,500 integrations, upload files up to 5GB, file sync |
| Dropbox | Professional | $16.58 | Transfer files up to 100GB, 3TB of storage, file sync |
Signing up for a cloud service is often cheaper than on-site alternatives, but signing up for a collection of services can quickly become cost prohibitive. A Flexera survey found that as much as 35% of cloud spend is wasted. It’s critical to have a good governance structure in place. It an help prevent unneeded expenses and risk exposure.
While security is one of the cloud’s biggest benefits for small businesses, it’s also one of the biggest risks. Giving sensitive documents to a third party transfers the responsibility to keep them safe, and data centers can experience security breaches that expose those files. Each service a business signs up for carries this risk, so it compounds.
Here are other things to consider before signing up for a service.
Benefits
- Savings. Cloud computing costs less upfront than building an IT infrastructure and support. It’s also less expensive on an ongoing basis as IT costs decrease and work becomes more streamlined. Service providers typically charge a per member per month fee, but it can be held to only what’s needed.
- Remote access. Accessing data remotely has never been more important. Many workers demand hybrid or remote work environments and cloud computing can accommodate them. It enables them to access company files and software from the comfort of their home, a café, or anywhere else they find high-speed internet.
- Scalability. Since most cloud services charge per user per month, small businesses only have to pay for the number of users they need. They can increase the number of users as they grow, or if they need to scale down, they can reduce the user count.
- Backup and data recovery. Cloud computing allows for off-site data storage. Local files, folders, and hard drives can be backed up to a data center, protecting them from incidents ranging from human error to natural disasters and enabling recovery.
Drawbacks
- Less control. Signing up for a cloud service often means entering an environment over which the provider has complete control. That means the provider has full command of security, continuity, where data is stored, how much functionality is made available, and more.
- Customer support. Relying on customer support to resolve issues can be a time suck. Some service providers don’t offer it 24/7, some only have email or chat support, and some take as much as a couple of days to respond. Those limitations can cost money and opportunities by preventing work from taking place.
- Uptime isn’t 100%. Sometimes data center hardware breaks or needs maintenance. The data center could also experience a natural disaster or a power outage that takes it down. These events could cause downtime and prevent access to crucial data until resolved.
Backing up your data to the cloud can protect it from hardware failure, natural disasters, human error and a mountain of other potentially catastrophic events. Boulder Cloud Services – a fictional company created for this example – provides affordable, secure, rock-solid backup solutions for small businesses.
This article was originally written as a test piece. It’s published here as a portfolio sample demonstrating SaaS and small business technology writing. Updated Nov. 11, 2025.