Should I move my business to the cloud?

The cloud isn’t magic, and it’s not right for every business. Let’s break down the real considerations so you can make an informed decision.

What “Cloud” Actually Means

First, let’s clarify. “The cloud” isn’t one thing. It’s a spectrum:

SaaS (Software as a Service)

Applications you access via browser
Examples: Microsoft 365, Salesforce, QuickBooks Online
You probably already use this

IaaS/PaaS (Infrastructure/Platform as a Service)

Virtual servers, databases, and services running in someone else’s data center
Examples: Azure VMs, AWS EC2, cloud databases
This is what people usually mean by “moving to the cloud”

Hybrid

Mix of on-premise and cloud resources
Often the most practical approach for SMBs

The Honest Case FOR Cloud

1. Reduced Capital Expense

On-premise: Buy servers ($10,000-$50,000), replace every 5-7 years, pay for maintenance.

Cloud: Pay monthly for what you use. Convert capital expense to operational expense.

Reality check: Monthly costs add up. Over 5 years, cloud can cost more than owning. But you avoid large upfront investments.

2. Built-in Redundancy

On-premise: Your server room floods? Fire? Hardware failure? Your data and applications are gone unless you’ve invested heavily in redundancy.

Cloud: Major providers have multiple data centers, automatic failover, and built-in disaster recovery.

Reality check: You still need to architect for redundancy. Cloud makes it easier, but doesn’t guarantee it.

3. Scalability

On-premise: Need more capacity? Buy more hardware. Wait weeks. Hope you sized it right.

Cloud: Add resources in minutes. Scale down when you don’t need them.

Reality check: Most SMBs don’t actually need dynamic scaling. If your needs are stable, this benefit is theoretical.

4. Anywhere Access

On-premise: Accessing systems remotely requires VPN setup, firewall rules, security considerations.

Cloud: Access from anywhere with internet. Better for remote/hybrid work.

Reality check: This is a real benefit in the post-COVID world.

5. Automatic Updates and Patches

Cloud (especially SaaS): Vendor handles updates. Always on the latest version.

On-premise: You’re responsible for patching and updates.

Reality check: Good IT management handles on-premise updates too. But cloud does make it easier.

The Honest Case AGAINST Cloud (Or For Caution)

1. Ongoing Costs Add Up

Let’s do real math for a 25-person company:

Cloud scenario:

Microsoft 365: $35/user × 25 = $875/month
Cloud file storage/backup: $500/month
Cloud server (replacing on-prem): $500-1,500/month
Total: ~$2,000-3,000/month = $24,000-36,000/year

On-premise scenario:

Microsoft 365 (still needed): $875/month
Server hardware: $15,000 (amortized over 5 years = $250/month)
Maintenance/support: $500/month
Total: ~$1,625/month = $19,500/year

Over 5 years:

Cloud: $120,000-180,000
On-premise: $97,500 + hardware replacement

Reality: Cloud often costs more over time, but provides other benefits.

2. Internet Dependency

Everything in the cloud requires internet. If your connection goes down:

No email access
No file access
No business applications
No work gets done

Consider:

Reliability of your internet
Cost of redundant connections
Impact of downtime

3. Less Control

In the cloud:

You can’t physically access your data
You’re subject to provider outages (Microsoft 365 has outages)
You’re subject to provider policies and pricing changes
Vendor lock-in can be real

4. Compliance Complexity

Depending on your industry:

You may need specific certifications from cloud providers
Data residency requirements may limit options
Some regulations prefer on-premise control

Examples: Some HIPAA and financial regulations are easier with on-premise, though cloud can work.

5. Migration Isn’t Free

Moving to the cloud involves:

Planning and assessment: $2,000-10,000
Data migration: $5,000-25,000
Application reconfiguration: $5,000-20,000
Training and change management: $2,000-5,000
Productivity impact during transition

Total migration cost for 25-person company: $15,000-60,000

Who Should Definitely Go Cloud

Cloud makes the most sense if you:

Have no existing on-premise infrastructure
Are starting a new business
Have a distributed/remote workforce
Can’t afford upfront capital investment
Don’t have IT expertise in-house
Need to scale up/down frequently
Have simple, standard needs

Who Might Want to Stay On-Premise (Or Go Hybrid)

Consider keeping some infrastructure on-premise if you:

Have significant existing investment in hardware
Have reliable, fast local internet
Have strict compliance requirements
Have specialized applications that don’t work well remotely
Have IT expertise to manage systems
Process large amounts of data locally (bandwidth limits matter)

The Hybrid Approach (Often Best for SMBs)

Most small businesses end up hybrid:

Cloud:

Email and productivity (Microsoft 365)
Standard business applications (CRM, accounting, HR)
Backup and disaster recovery
Remote access infrastructure

On-premise:

Specialized applications
High-performance computing needs
Large local storage requirements
Certain compliance requirements

This gives you:

Flexibility of cloud where it makes sense
Control and performance of on-premise where needed
Cost optimization

Questions to Ask Yourself

What problem am I trying to solve? Don’t migrate for migration’s sake.
What’s my real cost comparison? Include migration costs, ongoing costs, and staff time.
What happens if the internet goes down? How much does downtime cost?
What are my compliance requirements? Some rules affect where data can live.
What’s the realistic timeline? Cloud migrations take longer than vendors promise.
What’s my exit strategy? How do you get data out if you leave a cloud provider?

Our Recommendation Process

When clients ask us about cloud, we:

Assess current state - What do you have? What works? What doesn’t?
Understand business needs - Where are you going? What matters most?
Model costs - Honest comparison of all options over 5 years
Evaluate applications - Which are cloud-ready? Which need work?
Plan migration - If cloud makes sense, how do we get there safely?
Hybrid design - Often the answer is “both” - carefully designed

The Bottom Line

Cloud isn’t automatically better or cheaper. It’s different.

For many SMBs, a hybrid approach - keeping some things local while leveraging cloud for email, collaboration, backup, and remote access - is the sweet spot.

Don’t let a salesperson tell you to “move everything to the cloud” without a proper analysis. And don’t avoid the cloud out of fear. Make a data-driven decision.

Want to know what makes sense for your business? Contact us for a cloud readiness assessment. We’ll give you an honest recommendation based on your specific situation.