Short answer: almost every SME should move email, office apps and files to the cloud, but business systems and specialist software need a closer look. The cloud isn't automatically cheaper or automatically more secure. It works when you know what you're moving and why, what it costs each month, and how you'd get your data back if you ever want to switch.
The cloud debate often narrows to two extremes: "everything should go to the cloud" or "our own server is safer". Reality sits in between, and for an SME the right answer differs system by system. This article helps you think through your own systems one at a time, so the decision isn't made by fashion or by a vendor's offer.
Where companies stand
According to Eurostat, 52.74% of EU enterprises paid for cloud services in 2025, up 7.42 percentage points in two years. Size matters here too: 49.3% of small companies, 66.78% of medium-sized ones and 84.67% of large ones. The spread between countries is wide, from 79.2% in Finland to 17.8% in Bulgaria.
What companies use it for says a lot. Among EU cloud users:
- email: 85.15%;
- office software: 71.69%;
- file storage: 71.53%;
- finance and accounting software: 58.16%;
- business systems (ERP): 30.12%;
- customer management (CRM): 27.91%.
So the office basics are already largely in the cloud; for business systems, far fewer companies have made the move.
What to move to the cloud
Almost always:
- email and calendars: running your own mail server rarely makes sense for an SME today;
- office apps and shared documents: co-editing, versions, access from anywhere;
- file storage and sharing: replacing the old file server, with permissions;
- one copy of your backups: off-site backup is simplest in the cloud.
Worth weighing up:
- business systems (ERP), accounting, CRM: cloud versions are quick to roll out and need no server of your own, but data export and customisation are contractual questions;
- in-house applications: if the load is stable and predictable, your own or a rented server can be cheaper;
- large data volumes: if you move many terabytes often, bandwidth and storage fees matter.
Often stays on site:
- systems tied to production lines or machines, where latency or an internet outage isn't acceptable;
- legacy software no longer supported by the vendor and not cloud-ready;
- specially regulated data, where a contract or sector rule requires it.
Five questions for every system
Before deciding about any single system, answer five questions:
- Who uses it, and from where? If people work from several locations or on the road, the cloud's accessibility is a strong argument.
- What happens if it's unavailable for a day? The answer tells you how much you should invest in availability, wherever it runs.
- How much does it cost to run today, including hardware, licences and someone's time to maintain it?
- What would it cost in the cloud over three years, including migration?
- How would you get the data out if you needed to?
The answers usually make the decision obvious. Where they don't, a short trial with a small group helps more than another round of comparing feature lists.
The cloud isn't automatically cheaper
In Flexera's 2026 survey, respondents estimated 29% of their cloud (infrastructure and platform) spend as waste, the first increase in five years, driven largely by AI workloads. 85% named managing cloud costs as their top challenge. The sample is mostly larger US organisations, but SMEs know the pattern too: forgotten services left running, oversized plans, unused licences.
The "everyone is leaving the cloud" story also comes up often. The widely quoted 83% figure actually means 83% of surveyed companies planned to bring back at least some workloads, not that 83% of workloads are moving back. Cloud spending keeps growing. The lesson isn't that the cloud is bad, but that decisions should be made system by system.
Security: shared responsibility
The cloud provider is responsible for a lot: physical security, the data centre, the network, platform updates. But not everything. Under Microsoft's shared responsibility model, in every cloud model the customer keeps responsibility for:
- the data;
- user accounts and identity;
- endpoints (laptops, phones);
- access management.
In practice, cloud email or file storage is only secure if accounts have multi-factor authentication, permissions are in order, and there's a backup. The provider won't protect you if someone deletes files from a compromised account. Moving to the cloud is a good moment to finally put these basics right.
Exit plan: the Data Act helps
The EU Data Act has applied since 12 September 2025 and also covers switching cloud providers. According to the Commission's summary, from 12 January 2027 switching and data egress charges are removed entirely; until then, providers may only charge cost-based fees.
That's good news, but it doesn't solve everything. The law says your data can be exported, but in practice you need to know in what format, how long it takes, and where it goes. So for every cloud service, check up front:
- in what format data can be exported;
- how long a full export takes;
- what you get back of settings, workflows and permissions.
A hybrid setup: the most common good answer
For most SMEs the question isn't all cloud or nothing. The most common setup that works is hybrid: email, the office suite and files in the cloud, the business system as a cloud service or on a rented server, and a few specialist systems on site, such as software tied to production.
Hybrid only stays manageable if you control users and permissions in one place. Joining and leaving shouldn't mean opening and closing accounts by hand in five systems. Make the company identity (for example your Microsoft or Google account) the hub, and connect other systems to it wherever possible.
How to choose a provider
- Where is data stored? If you need EU storage, settle it when choosing the plan.
- What availability does it commit to, and what happens if it's missed?
- In what format and how fast can data be exported?
- Is there a data processing agreement under the GDPR?
- How can prices change, and with what notice?
- Who provides support in your language, and how fast?
How long does a move take?
For an SME, moving email and files typically takes days to a few weeks, depending on company size and data volume. The technical part is rarely what slows things down. Most of the time goes into tidying old files, rethinking permissions and training people. Moving a business system to the cloud is a longer project, where data migration and integrations set the pace.
Managing cloud costs
Cloud costs rarely explode on one big invoice; they add up from many small items. Three simple habits help a lot:
- One owner: someone who looks at every cloud invoice monthly and knows what each one is for.
- Licences matched to real use: cancel leavers' licences immediately, and check who actually needs the pricier plan.
- An annual review: once a year, go through every subscription and ask whether you still need it and whether the plan size is right.
In an SME, these three habits often save more than any technical optimisation, and they take less than an hour a month.
How to move
- Make an inventory: which systems exist, where they run, who uses them, how much data they hold.
- Sort them: goes to the cloud, needs weighing, stays on site.
- Start with the simplest: email, office suite, files. They bring the fastest benefit with the least risk.
- Clean up before moving: don't take old, unnecessary files and accounts with you.
- Set up security from day one: multi-factor authentication, permissions, backups.
- Track costs monthly: who uses what, and what you actually need.
- Write down an exit plan for every important service.
Common mistakes
Lift and shift. Moving the chaos of an old file server to the cloud isn't tidying up; it's relocating the chaos. A move is a good chance to rethink folder structure and permissions.
Dropping backups. "It's safe in the cloud" – the provider protects against its own failures, not your users' mistakes or a compromised account. Cloud data needs backups too.
Forgotten subscriptions. A trial that turned into a paid plan, a leaver's licence, an old storage account. Review every cloud subscription once a year.
Neglecting the network. When everything is in the cloud, your internet connection becomes the most important infrastructure. A backup connection is often cheaper than a day of downtime.
What to do now
- Make an inventory of your systems and data.
- Move email, the office suite and files to the cloud if you haven't yet, and tidy them up on the way.
- For business systems, weigh it up: cost, customisation, data export.
- Switch on multi-factor authentication, and sort out permissions.
- Back up your cloud data too, with a separate service.
- Track costs monthly, and review subscriptions yearly.
- Write an exit plan for important services, and test an export at least once.
If you'd like someone to plan and run your move to the cloud, from the inventory to the security settings, have a look at our modern workplace and cloud and infrastructure and operations services.
FAQ
What should an SME move to the cloud first?
Email, office apps and files. They bring the fastest benefit with the least risk, and they're also what EU cloud users use most.
Is the cloud cheaper than your own server?
Not automatically. There's no hardware to buy or run, but monthly fees add up, and it's easy to pay for forgotten services. Flexera's survey found an estimated 29% of cloud spend is waste.
Is the cloud more secure?
Physical and platform security is usually better than in an SME's own server room. Protecting accounts, permissions, data and endpoints remains your responsibility.
What is the Data Act, and what does it mean for switching providers?
The EU's data regulation, applicable since 12 September 2025. According to the Commission, from 12 January 2027 cloud switching and data egress charges are removed entirely.
How many companies use the cloud?
According to Eurostat, 52.74% of EU enterprises paid for cloud services in 2025, ranging from 79.2% in Finland to 17.8% in Bulgaria.
Sources
- Eurostat – 53% of EU enterprises used paid cloud services in 2025
- Eurostat – Cloud computing: statistics on the use by enterprises
- Flexera – Flexera Finds Cloud Value is Rising While AI Waste Grows (2026)
- Channelnomics – Breaking Down the 83% Public Cloud Repatriation Number
- European Commission – Data Act explained
- Microsoft Learn – Shared responsibility in the cloud
