Disclosure: Your support helps keep the site running! We earn a referral fee for some of the services we recommend on this page. Learn more


Cloud computing is the de facto standard for various technical services. While almost all major corporations already use cloud solutions, a rapidly growing number of small and midsize businesses (SMBs) also use this technology.

Deciding whether it makes sense to start migrating systems to the cloud can be difficult. Learn about some of the benefits of having a private cloud and get answers to common questions.

Key takeaways:

  • Whether your business needs a private cloud
  • The benefits of a private cloud for your small business
  • The risks of not having a private cloud for your business
  • How to get started with private cloud services for your small business

How Do You Decide if Your Business Needs a Private Cloud?

First, it is important to learn about the benefits of setting up a private cloud solution for your business. This helps you decide if it is the right move and, if so, choose how you want to use the cloud.

How do companies use a private cloud?

When determining if your business needs a private cloud service, you need to understand more about this type of service, its benefits, and several other important factors. Many options are available for setting up a private cloud solution for your business.

For example, some companies move their information technology (IT) infrastructure onto the cloud. They don’t have any servers hosted locally but connect to their cloud environment for things previously done on a local network. But other companies only use a private cloud system for a few select things. For example, it’s common for small businesses to move their data storage to the cloud while keeping most of their other systems local.

5 Benefits of Private Cloud for Your Small Business

There are many great benefits of having a private cloud service for your small business. These are among the most significant advantages you can enjoy once you have your cloud platform up and running, considering that each business’s needs are different.

Better security

No matter what type of cloud services your business uses, you’ll benefit from the increased security. Cloud service providers such as Cloudways, specialize in keeping their systems up to date with the latest security systems to protect the data used from all threats. In addition, these providers have teams of people specializing in digital security, which the average small business cannot have on its own.

Easier regulatory compliance

Private clouds are one of the most effective options available when it comes to IT quality and standards. If your small business has regulatory requirements to comply with, moving to the cloud makes sense because it’s challenging for small companies to meet the demanding standards established by government agencies or other regulatory bodies.

Take advantage of managed IT services

Cloud service providers specialize in this area, hiring the best people in the industry to handle every aspect of their systems. You have all the benefits of these managed IT services at a fraction of what it would cost to hire the team yourself. If you’re running IT systems on your local servers, you need a team of people to support those systems. It’s expensive — whether this is one jack-of-all-trades person or an entire group of IT professionals.

It may save you money over time

You’ll pay for private cloud systems monthly, which can seem pricey at first. But, since you no longer have to buy the hardware, monitor your systems, and manage the environment on your own, cloud solutions save you money. Additionally, most private cloud systems charge based on your usage, so you aren’t wasting money purchasing advanced hardware that you won’t fully utilize.

Private clouds can grow with your business

Another perk of private cloud systems is they can grow alongside your business. You may want to start using cloud data storage and cloud web hosting. As your business grows, you can add cloud-based email systems. In time, you may get to the point where your IT systems are run on your private cloud network, so you don’t have to worry about a thing.

The Risks of Not Having a Private Cloud Service for Your Small Business

These are some of the biggest risks that your company faces by not taking advantage of cloud technology:

Your business’s tech could fall behind

As private cloud solutions become the industry standard for all businesses, those that don’t take advantage are at risk of falling behind. If you cannot keep up with the latest technological trends, it’s more difficult for your company to succeed.

Increased downtime for your systems

Locally hosted IT systems have a much greater risk of facing issues than cloud systems. These risks mean your company’s website and other vital systems are often unavailable if you don’t migrate to the cloud.

You could lose key IT talent

Small businesses often rely on one or two key employees to help manage their IT infrastructure. If that person finds another job, the company may face elevated risks until it can replace the key employee. Cloud services providers have large teams of experienced IT professionals to help to avoid this problem.

You may waste resources

You may often need a technical solution to complete a one-time project. If you buy the system locally, you’re at risk of paying for the full system when you only need it for a short time. Cloud systems allow you to use services only as needed, which avoids this type of waste.

Which Small Businesses Should Have a Private Cloud?

Most modern small businesses should seriously consider having a private cloud system. For example, if your company has a website, use the best web hosting services, which may likely be cloud hosting.

All businesses, regardless of size, benefit from having private cloud systems in place. Cloud specialists manage these systems, and they’re effortless to set up, so you don’t need to be an expert to do it properly.

If your company uses email, cloud-based email solutions are likely the best option. And if your company stores any type of data, cloud-based storage solutions are much easier to manage, more secure, and better in every way.

How Do You Get Started With a Private Cloud Service for Your Small Business?

The first step is to find the right service provider for your needs. Colossal cloud service providers like Amazon Web Services (AWS) and Microsoft Azure are often great choices.

Many different smaller companies offer specialized cloud services based on your needs. Once you find a company you can trust, work with their sales and technical teams to determine what services you require and how to get started.

Frequently Asked Questions About Private Cloud Services for Small Businesses

Can you use a public cloud for your small business?

You can use a public cloud, but ensure you set up adequate security systems, such as intrusion detection and prevention systems (IDPS).

Why do businesses use a private cloud?

Businesses use a private cloud to improve security, flexibility, and efficiency. It is also more energy-efficient and reliable. A private cloud creates easier communication among colleagues and improves your business’s data usage and storage.

What are the disadvantages of a private cloud?

Private cloud services may be more expensive to create and maintain than public cloud services. Also, some people are overwhelmed by how many private cloud options there are, and not all companies need unlimited storage.
Need a great website builder?
Save time and money with these top-rated website builder deals.
Hostinger
Best website builder
Hostinger
Best website builder
$2.99/mo
Web.com
Best website builder for small businesses
Web.com
Best website builder for small businesses
$4.17/mo
GoDaddy Website Builder
Best website builder for beginners
GoDaddy Website Builder
Best website builder for beginners
$9.99/mo