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The private cloud is reserved more for larger companies that have their own IT staff, data centers and are investing large amounts of money in infrastructure, like computers, to increase the flexibility of assets.

“You need to be looking out for a service that is month-to-month.

Let them prove they are doing what they say they are doing.”There are perceived trade-offs for the cloud that include control and security, but really there aren’t any depending on business, said Box’s Levin, who has worked with small businesses and the cloud for six years.“Realistically, those companies are going to get much better security, reliability and performance with much lower costs and hassle,” he said.

It can be used to store intellectual property like documents, drawings, applications and code proprietary to a business.“Typically, technologists think about Iaas in scenarios, such as what can I do for backup in the event of a disaster,” he said.

“Small businesses are getting to the point where they no longer store documents locally in anticipation of an unforeseen event, so while performing disaster recovery, they can get to them quickly and inexpensively.”Platform as a service, meanwhile, can be used to develop and run a website in the cloud or build applications.

“I’ve see a number of small businesses lose data because it wasn’t backed up or living on an old machine slid under the desk of some manager.”Today, companies can trade that in for the cloud and get world-class infrastructure maintained by some of the best companies on the planet, and get it for $50 a month or less, Levin added.

If a company does it right, cloud services will enable them to get enterprise-level information technology at a cost that is aligned with their own business model, Parallels’ Zanni said.

Helping to drive that were 6 million SMBs purchasing their first cloud service last year.

And, the report projects that the market is expected to grow annually at a rate of 28 percent through 2015 to be a billion industry.

John Zanni, vice president of service provider marketing and alliances for Parallels, said he has seen huge opportunity and growth of small businesses consuming cloud services.“It’s less relevant what technology is being used, but more relevant if the services are using well-known brands,” Zanni said.

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