In 2025, small and medium-sized businesses (SMEs) face more pressure than ever. While maintaining flexibility, they are also expected to scale rapidly. Cloud technology has revolutionised SMEs by providing significant tools and resources to help their growth become more efficient and effective. With technology constantly changing, SMEs have had to adapt to the changes. They have gone from questioning “Why should we use it?” to fully embracing it to ensure that they can still compete with their competitors. Streamlining operations, reducing overhead expenses and encouraging seamless collaboration without large upfront payments are more ways in which cloud technology can ensure that SMEs develop.

What is Cloud Technology?

Cloud technology refers to saving files on a physical server maintained by a cloud service provider instead of a storage device or hard drive. This allows the user to access those files from anywhere if they are connected to the Internet.

Types of Cloud Technology

Cloud technology has evolved into different types to meet distinct needs or specifications for businesses and individuals. The three types of cloud technology can be described below:

1. Public Cloud: Provided by external cloud service providers like Google Cloud and Microsoft Azure, public cloud services are accessible to anyone connected to the Internet. Small-medium enterprises (SMEs) considerably benefit from this cloud model because of its flexibility and cost-effectiveness.
2. Private Cloud: This cloud can be maintained on-site or by a third party and is dedicated to a single business. Greater security and control come with this cloud model. Since this cloud approach can be costly and difficult to set up, smaller SMEs would not find it necessary for their needs. However, because they may withhold some sensitive information, larger SMEs may choose to use the private approach.
3. Hybrid Cloud: This is a combination of both public and private cloud models, which allows businesses to share resources while maintaining the security of their valuable data through their IT infrastructure. SMEs that use this approach tend to have a balance of flexibility, cost-efficiency, security and control. With this strategy, SMEs can store confidential information on their servers and access it through open-source cloud applications.

Advantages of Cloud Technology

The cloud can be vital for small and medium-sized businesses (SMEs) to store their critical data and help their businesses scale faster. SMEs can benefit from implementing cloud technology in their companies in the following three ways:

1. Cost-Effective: Maintaining an IT system can be expensive for SMEs because it needs certain infrastructure. SMEs can significantly lower their costs if they choose to invest in the cloud. Many cloud providers typically operate on a pay-as-you-go basis. SMEs would only be required to pay for the services they have utilised, further lowering costs.
2. Business Security: SMEs cannot risk losing their data – the cloud safely stores and protects the data. The cloud will help SMEs continue to operate without worrying about losing their data in a crisis.
3. Flexibility: Since the cloud storage requirements can increase when needed, it enables SMEs to be flexible as the cloud storage can expand as the SME grows.

Disadvantages of cloud technology

Although cloud technology has advantages, it’s crucial to acknowledge that it also presents challenges. When using cloud technology, SMEs may encounter the following two difficulties:

1. Dependency on the Internet: As previously stated, anyone with an Internet connection can access the cloud from anywhere. However, a bad internet connection or no access to an internet connection can prevent users from retrieving cloud data. Additionally, there is a security risk if a user chooses to access the network via public Wi-Fi.
2. Financial Investment: Some cloud services request businesses to subscribe to a package and commit either monthly or annually for those cloud services, even though many do use the pay-as-you-go method.

Despite being perceived as a trend, cloud technology is essential to the growth of modern business. Small-medium enterprises (SMEs) will grow quickly, work more effectively, and innovate better when utilising cloud technology. Adapting and implementing cloud technology will provide leverage to succeed in a competitive space that is constantly changing. With so many opportunities, why not embrace the cloud and see how your SME can reach new heights? The future is now, and it’s all in the cloud.

Start harnessing the power of cloud technology today and unlock limitless growth potential. Contact us on 087 711 0555 or email info@oasisit.co.za to transform your business and scale faster than ever before.